Amazon, JPMorgan and Berkshire Hathaway Take Healthcare Into Their Own Hands
Early Tuesday, Amazon, JPMorgan and Berkshire Hathaway announced that they are collaborating to form a healthcare company to provide healthcare to their employees in the U.S. at a lower cost. Amidst uncertainties in the healthcare insurance market and with looming increases in healthcare costs, these business giants are taking care of their own workers in their own way.
The healthcare services are aimed to be “simplified, high-quality and transparent healthcare at a reasonable cost.” The three large companies will be combining their scale and their resources to create the healthcare solutions, that will extend to their employees’ families.
Experts are praising these employers’ efforts, saying that their collaboration brings much potential in the industry. Since the announcement of the joint venture on Tuesday, shares for major health insurance players, such as huge insurers, fell drastically.
The climate in the healthcare industry that is filled with uncertainty and growing costs are prompting employers to take action. The joint venture taken by these major companies is a major step in providing healthcare at a lower cost. Other employers are taking other routes, such as bypassing insurance companies and going directly to hospital systems for healthcare for their employees.
Although this major joint venture announcement is a big step for employers, there have been other attempts from large companies to take matters into their own hands. In 2016, 20 companies had collaborated to develop the Health Transformation Alliance to secure better pharmacy contracts. Currently, there are 40 large companies in this alliance. Their efforts now include providing healthcare services for employees with diabetes, hip and knee replacements and lower back pain.
Read the original article from Modern Healthcare here.
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