Amazon, JPMorgan Chase, and Berkshire Hathaway announced on Tuesday that they intend to form a new company that manages health care for their hundreds of thousands of U.S. employees, the idea being that a unified, not-for-profit entity can reduce workers' expenses.
The surprising trio of the nation's largest online retailer, largest bank by assets, and most famous investor (Warren Buffett, the chief executive of Berkshire) riding to the rescue of the beleaguered health system already rocked insurance stocks and thrilled health-care experts who have long dreamed of a technological solution to “bend the curve” of inexorably rising medical costs.
But it's not altogether clear what this company will be, how much money each corporation will commit to it, or whether it is meant to eventually provide services for workers at other companies. It's also not clear how the venture will financially benefit the three corporations.
