Amazon, Berkshire Hathaway,J P Morgan join hands on US employee health care

Amazon, Berkshire Hathaway, and J P Morgan Chase today announced a partnership to cut health-care costs and improve services for their U.S. employees. The announcement slammed the shares of multiple companies in the health-care sector.

The giant companies, which together employ more than 1.1 million workers, will launch an independent operation that’s intended to be free from profit-making incentives.

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 that provides “simplified, high-quality and transparent” care.

Buffett said in a prepared statement, “The ballooning costs of (health care) act as a hungry tapeworm on the American economy.Our group does not come to this problem with answers. But we also do not accept it as inevitable.”

The new company’s goal at first will be to target technology solutions to simplify the health-care system.

Details of the new company were sketchy, with principles of Amazon, Berkshire and J.P. Morgan noting that the way it will work remains to be seen. They’re hoping that their sheer size will help bring the necessary scale and resources to tackle the issue.
Three top executives, one from each company, will take the lead on the project: Berkshire investment officer Todd Combs, J.P. Morgan’s Marvelle Sullivan Berchtold and Beth Galetti, a senior vice president at Amazon.
The need for a solution to the health-care crises in the U.S. is intense. With about 151 million non-elderly people, employer-sponsored coverage is the largest part of the U.S. health insurance market.