Amazon is joining the healthcare insurance business along with Buffett’s Berkshire Hathaway and JPMorgan Chase.
They have yet to name the unveiled company which will provide their U.S. workers and families with a better option of healthcare. The statement released said the new company will be “free from profit – making incentives and constraints.” It will not be available to companies other than the 3 which have over 840,000 global employees.
Even though the company is only planning on providing service for their employees and families, Amazon has a reputation of disrupting markets it enters. With them entering in the healthcare market, they also hope to shake up investors in the healthcare sector.
Buffet, Benzos, and Dimon -The leaders of the three companies- are all friends who have discussed the problems revolving healthcare in depth over the years.
Buffet expresses his opinion about the U.S. healthcare… “The ballooning costs of healthcare act as a hungry tapeworm on the American economy”. “We share the belief that putting our collective resources being the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”
Benzos is optimistic about the challenge of the healthcare system, and welcomes the degree of difficulty with open eyes. “Hard as it might be, reducing the healthcare’s burden on the economy while improving outcomes for employees and their families would be worth the effort.”
While they are in the early stages of developement, each company has named one executive to work on the effort. They have yet to determine a full management team, operational details, or headquarters location.