Amazon is diving into health care, teaming up with Warren
Buffett’s Berkshire Hathaway and the New York bank JPMorgan Chase, to create a company that helps their U.S. employees find quality care “at a reasonable cost.”
The leaders of each company, Amazon’s Jeff Bezos, Buffet, and JPMorgan’s Jamie Dimon, offered few details today and say that the project is in the early planning stage. But just the announcement of the effort sent shares of health care companies down sharply across the entire sector. the Dow was down over 300 points Tuesday noon due to health and energy industry declines.
Buffett says in a prepared statement, “The ballooning costs of (health care) act as a hungry tapeworm on the American economy.” He says “Our group does not come to this problem with answers. But we also do not accept it as inevitable.”
“The businesses say the new venture’s initial focus would be on technology that provides “simplified, high-quality and transparent” care and will be free from profit-making incentives and constraints.”