Amazon, JPMorgan, Berkshire team up to tackle health care

  • Amazon, JPMorgan, Berkshire team up to tackle health care

Amazon, JPMorgan, Berkshire team up to tackle health care

"The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our US employees, their families and, potentially, all Americans".

Amazon, Berkshire, and JPMorgan said that the kind of healthcare to be provided to employees will be long-term, and that they hope to bypass the frustration associated with securing healthcare from a third-party provider who is ultimately concerned with their own bottom line. Amazon's potential entry into the pharmacy business is also reverberating.

At first the major focus will be on technology to give USA employees and their families a "simplified, high-quality and transparent healthcare at a reasonable cost".

The release did not spell out specific details or of the partnership, noting that the effort is in its "early planning stages".

In a statement, Chief Executive of JP Morgan Chase, Jamie Dimon said that in the future an effort could be made to expand benefits to all Americans.

The announcement Tuesday that Amazon is partnering with Berkshire Hathaway and JPMorgan Chase on a new health care initiative sent ripples of panic through the health care industry.

Healthcare is one of the biggest operating costs for Fortune 500 companies, and the three iconic companies have joined forces to build a new health insurance company for all US employees in an effort to improve satisfaction and reduce those costs. Looks like good news for consumers: "'The announcement slammed the shares of multiple companies in the health-care sector, '" tweeted Erik Brynjolfsson, director of the MIT Initiative on the Digital Economy.

The search for ways to hold down health-care costs in the U.S.is intense.

One thing is clear: these are not companies known for narrow ambitions.

On Tuesday, Amazon, Warren Buffett's Berkshire Hathaway, and JPMorgan said they plan to form the new venture, which will be focused on building technology solutions that will provide "simplified, high-quality and transparent healthcare at a reasonable cost" to US-based employees and their families. It hurts the US economy in relation to other developed nations where costs are lower, he said, even though there are more doctors, nurses and hospital beds per person.

Health-care costs for businesses routinely rise faster than inflation and eat up bigger parts of company budgets. An estimated $30 billion was lost from the combined value of the ten biggest companies on January 30, 2018. "The solution will reportedly be 'free from profit-making incentives and constraints". "Our group does not come to this problem with answer". Berkshire has among its companies, health care liability insurer MedPro Group. Amazon reported in October that it has 541,900 employees worldwide.

President of Pembroke Consulting, Adam Fein said that its "long past time" for players like these three to bring innovation into the health-care system.

Rising health care costs in the United States, the only major world economy that does not provide universal medical coverage to its citizens, have been a perennial political issue.