Published: Tue, January 30, 2018
Money | By Armando Alvarado

Amazon, Berkshire, JPM enter healthcare

Amazon, Berkshire, JPM enter healthcare

Inc, Berkshire Hathaway and JPMorgan Chase & Co. are teaming up in a new venture aimed at lowering healthcare costs for their US employees, the companies said on Tuesday.

On Tuesday Amazon's Jeff Bezos said that he, along with Buffet and JPMorgan, would attempt to make health care better for hundreds of thousands of their employees, and perhaps, eventually, the country.

The three companies announced Tuesday they are teaming up to explore "ways to address healthcare for their USA employees, with the aim of improving employee satisfaction and reducing costs", according to a news release about the venture. While each named one executive to work on the effort, it has yet to decide on a longer-term management team, a headquarters location or other operational details.

"The ballooning costs of health care act as a hungry tapeworm on the American economy", said Buffett.

Amazon is partnering with Buffett's Berkshire Hathaway and JPMorgan Chase, the nation's largest bank, to get into the health insurance business. "But we also do not accept it as inevitable", Warren Buffett, Berkshire Hathaway chairman said in a statement.

Initially, the company's formation will be headed by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon.

Health-care stocks plunged after three companies led by Internet giant Amazon.com Inc.

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Mr Kim had also used his laptop and USB drive for the last time that day, according to a police computer forensics report. Mr Kim then met with a Korean American, he said.

The move comes amid growing speculation that Amazon is likely to enter the prescription drug business and that has sent tremors through the pharmaceutical supply chain.

Health care costs for companies routinely rise faster than inflation and eat up bigger portions of their budgets.

The independent company would be jointly led by executives from all three companies and would be focused on technology that could increase transparency and simplify health care, according to the joint announcement. Berkshire has among its companies, health care liability insurer MedPro Group.

The need for a solution to the health care crises in the U.S.is intense.

Shares in USA health insurers UnitedHealth, Anthem and Cigna Corp all fell over 5% in early trading following the announcement.

However, shares of health care companies tumbled in pre-market trading with CVS Health (CVS) down 7.48% to $77.32 and insurer UnitedHealth (UNH) down 6.6% to $231.

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