The American health care space could see a massive disruption as the CEOs of JPMorgan Chase & Co. JPM, Amazon.com, Inc. AMZN, and Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) have agreed to team up to to “address healthcare for their U.S. employees.”
What You Need To Know
JPMorgan’s Jamie Dimon, Amazon’s Jeff Bezos, and Berkshire’s Warren Buffett said in a press release they will be looking for ways to address health care issues with the objective of improving employee satisfaction, reducing costs, and provide workers and their families with simplified, high-quality and transparent health care at reasonable costs.
Details remain scarce as the initiative is still in the early planning stages and a longer-term management team, headquarters location and operational details will be revealed in the future.
“Our people want transparency, knowledge and control when it comes to managing their healthcare,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase. “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.”
Why It’s Important
Tackling the many challenges found within the health care space is “among the greatest issues facing society today,” the press release said. By bringing together three of the “world’s leading organizations,” the initiative offers a “fresh approach to these critical matters.”
Shares of pharmacy benefit managers and insurer stocks fell immediately after the news release as their business could see new competition from a not-for-profit entity.