A better option “free from profit-making incentives and constraints”
(CNN) Amazon is partnering with Buffett’s Berkshire Hathaway and JPMorgan Chase, the nation’s largest bank, to get into the health insurance business.
The three companies unveiled a yet unnamed company to provide their U.S. workers and families with a better option on health care.
The statement said the new company will be “free from profit-making incentives and constraints.”
As of a year ago the three companies had 840,000 global employees between them, though they did not breakdown how many of those are in the U.S.
As of now the companies are concentrating on a product for their own employees and family members, not a product to offer to other companies.
“A hungry tapeworm on the American economy”
“The ballooning costs of health care act as a hungry tapeworm on the American economy,” said Buffett.
“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.”
The three leaders of the companies – Buffett, Bezos, and Dimon – are all friends who have talked for years about the problems involved with providing healthcare to their employees, especially those based in the U.S., according to an executive familiar with their discussions.
“It wasn’t they saw each other one place and a light bulb went off,” said the executive. “These guys talk all the time. It’s the result of a lot of talk they’ve had both formally and informally over the years – ‘No one has to deal with buying a product like this other than health care.'”
Experts say that given the resources of the companies, and their history of concentrating on the long-term rather than just the near-term, they have a chance to make significant changes in the way health care is provided … Read the full story at CNN. Featured image: Warren Buffett, pubic domain; Jeff Bezos, Steve Jurvetson, CC BY 2.0; James Dimon, World Economic Forum, CC BY-SA 2.0.