Amazon, Berkshire Hathaway and JPMorgan Chase have announced that they will set up an independent company that aims to improve the healthcare system, according to the CEOs of the three business titans. The future company plans to balance the rising American healthcare costs and will be available for their employees.
Jeff Bezos, Warren Buffett and Jamie Dimon have made the announcement on Tuesday evening. They did not provide further details on how the independent system will work. The ambitious project focuses only on the US employees of the three companies. However, their business model is worth to watch, experts say. Shortly after the announcement, the shares of healthcare companies UnitedHealth Group and Anthem have fallen.
Online retail giant Amazon (AMZN), holding business Berkshire Hathaway (BRKA) and the large US bank JPMorgan Chase have no prior business connection to the American healthcare industry. This comes as a signal that the business world is concerned about the health solutions that citizens have access to. Also, around 151 million Americans now benefit from healthcare from their employees, according to a recent study.
Donald Trump Makes Promises about American Healthcare
Tuesday was the day of announcements in the political world also. President Trump pledged to address and minimize prescription drug prices.
One of my greatest priorities is to reduce the price of prescription drugs… Many other countries, these drugs cost far less than what we pay in the United States and it’s over, very unfair. That is why I have directed my administration to make fixing the injustice of high drug prices one of our top priorities for the year, said Trump in a State of the Union address.
However, experts in the field tend to focus more on the business giants’ announcement than the presidential promise. According to Mark Hamrick, the D.C. bureau chief at Bankrate.com, the business partnership is more tempting to read than other news. The president has made the above statement before.
Further details on the independent American healthcare company are to be announced as the project develops.