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Amazon, JPMorgan Chase, Berkshire creating new health care company

Amazon, JPMorgan Chase, Berkshire creating new health care company

Amazon's moves did not make sense at the time, but with its new project revealed, its initiatives to shake up the multitrillion-dollar prescription drug market is a clear start to bring down the overall cost of quality health care. Vague as the press release was, the source claimed that rumors would intensify and information would trickle out if the companies began their staff search prior to a formal announcement. On the other hand, Anthony Chukumba of Loop Capital Markets reminded his clients that the health care industry has relatively high profit margins and that one of Jeff Bezos's favorite sayings is, "Your margin is my opportunity". Amazon, which mostly sold books when it was founded more than 20 years ago, has radically altered the way in which people buy diapers, toys or paper towels.

Boeing has ventured in the insurance space, as have other companies like AT&T and Walmart, as well as the companies in the Health Transformation Alliance - headed by former U.S. Rep. Rob Andrews of New Jersey, who is also on the board of the HCQI.

Studies show United States health care costs as a share of the economy have doubled since the 1980s to 18 percent of GDP, and are far higher and growing faster than other major economies.

Change is likely to be slow in arriving.

"It is a bit arrogant to think three big firms are going to come in and kind of re-invent health care", said Zack Cooper, an economist at Yale School of Public Health.

While the focus of the venture should be on getting employees healthy, George said it should also ensure that when people do get sick they have access to major health centers.

The pact isn't the first time that corporations have pledged to upend the system. Create a large pool of customers to increase negotiation power? "ORCRP015915-topic.html" class="local_link" >UnitedHealth Group Inc.'s OptumRx, two of the largest pharmacy-benefits managers.




"If the organization is successful in improving the use of technology to deliver better, more transparent and cost-effective health care to members, then this could create pressure on the rest of the marketplace to improve its health care delivery systems and platforms", she added. But AbbVie - down 3 percent - and CVS - off 2 percent - extended their losses.

"Everyone wants better solutions to drastically reduce drug prices and force manufacturers to compete on price", said Linda Cahn, a consultant at Pharmacy Benefit Consultants in Morristown, New Jersey. JPMorgan said previously that it spent $1.25 billion on medical benefits in 2017 for 300,000 US employees and family members.

The effort is in its early planning stages, the companies said, and the initial formation of the company would be led by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of J.P. Morgan Chase; and Beth Galetti, a senior vice president at Amazon.

Six of the top ten companies with significant share declines on the Standard & Poor's 500 index were health care companies.

In the meantime, the middlemen are trying to remake themselves.

While the new company will be targeting USA employees, Canada should also prepare to see more technology giants entering some aspect of the health and insurance business in the near future, says Clarke. They only have to have "reinsurance" to cover the costs above the level that they can finance themselves.

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