News > Capital Markets, FinTech

Amazon, Berkshire Hathaway and JPMorgan Are Forming Independent Healthcare Company to Service Their U.S. Employees

By NexChange
Capital Markets, FinTech

Amazon, Berkshire Hathaway and JPMorgan Chase announced on Tuesday that they are teaming up to form “an independent company that is free from profit-making incentives and constraints” that will service the healthcare needs of their employees in the United States.

While the press release announcing the partnership is fairly scant on details, it notes that “initial focus of the new company will be on technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”

“The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” Berkshire Hathaway Chairman and CEO Warren Buffett said in a statement. “Our group does not come to this problem with answers. But we also do not accept it as inevitable. Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”
Ed Kaplan, the national health practice leader for the Segal Group, tells the New York Times that with their size and scale, Amazon, Berkshire Hathaway and JPMorgan would “make a big impact” if they got into the healthcare insurance or coverage space.

Mr. Kaplan said larger insurers were frustratingly inefficient when it came to fixing problems like people visiting the emergency room when they did not need to, or requiring a doctor’s visit for routine tasks like refilling a prescription.

“There should be a way to avoid things like that, but they’re not really innovating,” he said of the health insurance companies. “They’re talking a good game, but they’re not really doing it.”

The three companies say the effort “is in its early planning stages” and that “the longer-term management team, headquarters location and key operational details will be communicated in due course.”
Photo: Amazon

Subscribe to our Newsletter

Be one of the first to experience the future of financial services