Amazon, JP Morgan, and Berkshire Hathaway are creating an independent entity to address healthcare for their U.S. employees with the goals of improving staffers’ satisfaction and reducing their healthcare costs.
Details about the venture are scarce. However, the companies have emphasized it will focus initially on “technology solutions” to make healthcare simpler and more transparent for employees. The CEOs of the three companies cited high costs burdening both employees and the economy and the lack of transparency in the healthcare industry as the impetus for the company.
The new organization will initially be led by executives from the three companies: Todd Combs, an investment officer at Berkshire Hathaway; Marvelle Sullivan Berchtold, MD at JP Morgan; and Beth Galetti, SVP at Amazon.
Amazon made a move into the healthcare industry last October when it received pharmacy wholesaler licenses in several states, sending some healthcare stocks tumbling. Tuesday’s announcement had a similar impact on the market: CVS Health, Cigna, and Anthem all saw share prices drop in the hours after the announcement.
Amazon, Berkshire Hathaway, and JP Morgan Chase have more than 1.1 million employees worldwide.