Amazon, JPMorgan, and Berkshire Hathaway Unveil New Company in Bid to Lower Healthcare Costs

Jeff Goldsmith via Modern Healthcare

Amazon, Berkshire Hathaway, and JPMorgan Chase are teaming up to form a healthcare company to serve their U.S. workers in yet another example of large employers taking employee healthcare matters into their own hands to reduce costs. 

Details on the new venture were sparse, but the companies said early Tuesday that they will leverage their combined scale and expertise to develop technology solutions to provide employees and their families "simplified, high-quality and transparent healthcare at a reasonable cost."

There are many questions about how the companies plan to tackle the rising cost of providing healthcare benefits, a feat many employers, providers and insurers have attempted only to see U.S. healthcare spending climb even higher.

"The twitchy stock market reactions and the idea that billions of market cap would disappear from established companies like Aetna or Anthem with a story with the name Amazon attached to it tells you how much anxiety there is about Amazon," said Jeff Goldsmith, national advisor at the consultancy Navigant.

The problem these endeavors face is that these employees are scattered all over the place. The idea that you will do some comprehensive benefit redesign, the degree of difficulty in executing that is pretty darn high.

Jeff Goldsmith, National Advisor at Navigant

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