Posted on 01/30/2018 8:15:46 AM PST by SeekAndFind
Health care costs are "a hungry tapeworm on the American economy," Berkshire Hathaway Chairman and CEO Warren Buffett says, and now his firm is teaming up with Amazon and JPMorgan Chase to create a new company with the goal of providing high quality health care for their employees at a lower cost.
The new company will be "free from profit-making incentives and constraints" as it tries to find ways to cut costs and boost satisfaction with the health care plan for employees of Amazon, Berkshire Hathaway and JPMorgan Chase. The trio unveiled their new venture in a news release.
"The initial focus of the new company will be on technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost," the companies said.
The enterprise unites three of the largest and most envied companies in their respective sectors — from retail to banking, and including Berkshire's wide portfolio of companies such as Geico and Fruit of the Loom. And in Buffett, Amazon's Jeff Bezos and JPMorgan's Jamie Dimon, the companies also have veteran leaders who have shown an ability to solve vexing business problems.
According to recent annual reports, taken together the three companies employ more than 950,000 people worldwide.
The three CEOs say they're aware of the enormous problem they face.
"The health care system is complex, and we enter into this challenge open-eyed about the degree of difficulty," said Jeff Bezos, Amazon founder and CEO. "Hard as it might be, reducing health care's burden on the economy while improving outcomes for employees and their families would be worth the effort."
Responding to the announcement Tuesday morning, White House economic adviser Gary Cohn told CNBC "we agree in that philosophy. We think that individual workers should have to pay less for health care."
Still, the Trump administration already "created association health-care plans, which is the exact same thing that those companies did," Cohn said, referring to an executive order last October that sought to make it easier for employers to combine efforts in offering insurance. That order also opened the possibility some groups could get coverage across state lines — "a move that Republicans have long advocated as a way to lower costs," NPR's Scott Horsley explained at the time.
"Smaller businesses could pool their employees together to get more purchasing power," Cohn added Tuesday, "so they could save money on health care."
Details such as the company's name, base of operations and long-term leadership weren't included in a joint news release about the new company that was sent out Tuesday morning.
At the start, the new company will be led by executives from each of the troika of giant firms: Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; Todd Combs, an investment officer of Berkshire Hathaway; and Beth Galetti, a senior vice president at Amazon.
JPMorgan's Dimon said, "The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans."
Gee, I hope they aren’t forming a monopoly.
From the article: The new company will be “free from profit-making incentives and constraints” as it tries to find ways to cut costs and boost satisfaction with the health care plan for employees of Amazon, Berkshire Hathaway and JPMorgan Chase
So, it looks like it is for THEIR EMPLOYEES only. Whether it will expand to others remains to be seen...
Doh! Why did no one think of this before! Get rid of that nasty profit incentive and all will be well! Although every national health service have costs rocketing out of control we are " Masters of the Universe" and can succed where others have completely failed. ( Note to self buy large put positions in Amazon, Berkshire and J.P. Morgan.)
Actually, I see this as good news. Let the private market innovate. These guys are pretty smart and have a lot of resources so it’s terrific that they are seeking viable alternatives outside of government. Hopefully society as a whole benefits from their endeavor to innovate in the healthcare delivery field.
Probably the biggest news of the year or even decade.
This is the anti-Obamacare we have hoped for.
Good times ahead.
Kaiser healthcare started out that way. Henry J. Kaiser and other contractors put together their own health group for their workers and as it grew, they opened it to the public.
Begins to remind me of the hypothetical giant conglomerate "Weyland Yutani" in the "Alien" movie franchise.
Gee ... free from profit, just paying each of their management 1 mil a year.
Anything Warren Buffett touches should be shunned.
He was THE GUY that caused the 2008 meltdown. He owned Moody’s rating agency.
Ever wonder how MBSs full of loans held by illegal immigrant strawberry pickers owning 3 other mortgages and making $25K/year get rated AAA?
Ask Warren. AIG wants to know too.
IMHO this is an "Association Health Plan" (AHP).
Remember what President Trump Signed and the Idea came from Rand Paul and an ERISA ruling in regards to United Parcel?
This is that type of alliance albeit non-profit, and then do they open it up too others, like the AHP was intended to do?
And my guess, none of these CEO's and Warren Buffet who I can't stand will never give President Trump and congratulations or kudos on this...
Add your own adjective, and then add and the horse they road in on for their lack of thanks...
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