One of the biggest headlines on Tuesday was the announcement that Amazon’s CEO Jeff Bezos, as well as J.P. Morgan’s CEO Jamie Dimon and Berkshire Hathaway’s Warren Buffett are doing something grand to fix the healthcare system in the U.S.
Amazon is teaming up with Berkshire Hathaway and JPMorgan Chase to solve the rising health care costs in the nation.
The team have unveiled a company that gives U.S. workers and families a better option at health insurance coverage.
The new company, which remains unnamed right now, will be “free from profit-making incentives and constraints.”
One of the biggest issues with healthcare in the U.S. is the unbelievable costs.
“The ballooning costs of health care act as a hungry tapeworm on the American economy,” remarked 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.”
An executive familiar with the team’s decision has said, “It wasn’t that they saw each other one place and a light bulb went off. 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.'”
While some medical stocks were feeling the burn of this news, many are optimistic about what the three companies are doing.
“Nothing in health care changes in short order,” said Gary Claxton, the vice president of the Kaiser Family Foundation. “There are many things that are wrong — prices are very high. The provider markets are very consolidated. The insurance markets are very consolidated. Information is not readily available. And a lot of the money is spent on very ill people.”
“These are very visible companies with very deep assets,” remarked Dan Mendelson, CEO of Avalere Health, a health care consulting firm. “It’s certainly a positive they’re focused on it.”