Amazon wades into health care, builds team
Amazon is diving into health care, teaming up with Warren Buffett’s Berkshire Hathaway and the New York bank JPMorgan Chase, to create a company that helps their U.S. employees find quality care “at a reasonable cost.”
The leaders of each company, Amazon’s Jeff Bezos, Buffett and JPMorgan’s Jamie Dimon, offered few details Tuesday and said that the project is in the early planning stage.
“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.”
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.
It was not clear if the ultimate goal involves expanding the ambitious project beyond Amazon, Berkshire or JPMorgan. However, JPMorgan’s Dimon said Tuesday that, “our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans.”
The need for a solution to the health care crises in the U.S. is intense. With about 151 million nonelderly people, employer-sponsored coverage is the largest part of the U.S. health insurance market.
Health care costs for companies routinely rise faster than inflation and eat up bigger portions of their budgets. Americans are mired in a confusing system that creates a mix of prices in the same market for the same procedure or drug and offers no easy path for finding the best deal.