Amazon, Berkshire Hathaway, and JPMorgan Chase on Tuesday announced plans to partner-up on ways to cut health-care costs and improve services for U.S. employees.
“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. 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.”
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 solutions.
JPMorgan Chase Chairman and CEO Jamie Dimon said, “our goal is to create solutions that benefit our U.S. employees, their families and potentially all Americans.”
Companies get a tax break for offering health benefits to their workers, and many employers also see them as a critical tool for attracting and keeping workers. But costs are soaring and health care consumes a growing chunk of their budgets. Small businesses have been under particular strain.
News of the deal slammed suppliers in the industry including CVS, United Health and Aetna.
Amazon, JPMorgan & Berkshire Creating a New Health Care Company. Featured at RJO Ventures, Inc.