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Amazon, JPMorgan, Berkshire creating new health care company

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mudslag    8,291

 

Looks like the insurance industry might be in for a shake up


http://abcnews.go.com/Technology/wi...rkshire-creating-health-care-company-52700935


Amazon is diving into health care, teaming up with Warren Buffett's Berkshire Hathaway and the New York bank JPMorgan Chase, to create a company that helps their U.S. employees find quality care "at a reasonable cost."

The leaders of each company, Amazon's Jeff Bezos, Buffet, and JPMorgan's Jamie Dimon, offered few details Tuesday and said that the project is in the early planning stage.

"The ballooning costs of (health care) act as a hungry tapeworm on the American economy," Buffett said in a prepared statement. "Our group does not come to this problem with answers. But we also do not accept it as inevitable."

The new company will be independent and "free from profit-making incentives and constraints." The businesses said the new venture's initial focus would be on technology that provides "simplified, high-quality and transparent" care.

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techbeck    6,925

When you’re big enough and powerful enough, you don’t need to rely on the existing private healthcare providers out there to handle your employee medical needs. That’s what Amazon, Berkshire Hathaway and JPMorgan Chase have determined, and so they’re working together to build their own, fully independent employee healthcare company, which will exclusively offer benefits and care to their own respective employees and their families.

 

The goal is to build a company which has no motives other than to provide for the care and wellbeing of the workforce of the three companies, and that will be “free from profit-making incentives and constraints,” per the Wall Street Journal. It’s described as a long-term plan, but it hopes ultimately to avoid the kind of frustration that can go along with trying to secure needed care from third-party service providers who are ultimately concerned primarily with managing their bottom line and P&L statements.

 

Amazon founder Jeff Bezos said in a statement about the new venture that though the three partners are “open-eyed about the degree of difficulty” of entering the healthcare system as a services provider, the ultimate goal of “reducing healthcare’s burden on the economy while improving outcomes for employees and their families would be worth the effort.”

 

Berkshire Hathaway CEO Warren Buffet added that “the ballooning costs of healthcare act as a hungry tapeworm on the American economy,” and JPMorgan Chase chief executive Jamie Dimon said that the ultimate goal is to “create solutions that benefit our U.S. employees, their families and, potentially, all Americans.”

 

More....

https://techcrunch.com/2018/01/30/amazon-jpmorgan-and-berkshire-hathaway-to-build-their-own-healthcare-company/

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DocM    16,593

Walmart already has a better drug program than most insurance (and Medicare) via heavily discounted generics and bulk deals; $4 for 1 month, $10 for 3 months, $25 for insulin, directly shipped refills, etc.

 

Also, Amazon has applied for pharmacy licenses to break into the direct-ship prescription refill market.

 

(Dirty little secret: many new drugs don't work significantly better than older now-generic drugs, they're just more profitable due to having in-force patents.)

 

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+Mirumir    5,635

Sounds good and hopefully the new service will be available to anyone willing to sign up for it, not just the employees of these three companies.

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