Amazon, Berkshire Hathaway & JPMorgan Try To Disrupt Healthcare Industry

Full Disclosure

On January 30, 2018, three corporations – Amazon, Berkshire Hathaway, and JPMorgan Chase – made the decision that they could combine forces for an independent healthcare option for employees. These three companies are very significant, since Amazon is one of the biggest online retailers, Berkshire Hathaway is lead by Warren E. Buffet, and Chase is the largest bank in the nation.

At first, there was not a clear sign of how they would beat the current coverage that the employees had, though it is clear that this alliance could influence other businesses as well. In fact, other major retailers, like Walmart and Caterpillar, have not been able to overcome the deadlock that Congress has placed on the industry. Since over 151 million people get coverage from their employer, this change could impact much more than the current participants.

It seems that this partnership between such powerful options has been established as a result of the diminishing state of the nation, along with the spike in medical treatment costs for consumers. However, while this change seems to benefit employees, there seems to be turmoil in the industry as a result, with the lack of help from doctors, hospitals, and other players in the medical industry. However, the big concern is with the dramatic decrease in stocks, as these companies threaten to monopolize the entire healthcare industry.

These three teams are far from the first retailers to come up with this plan. With the line between the pharmaceutical industry and the medical community becoming thinner and thinner, major drug companies and even medical professionals could take a significant hit. However, the CEOs of the companies understand that there is a certain “degree of difficulty,” that they need to be aware of, according to Jeff Bezos, the founder of Amazon.

While the combination of these companies is supposed to be without any kind of profit, there’s concern that their ability to serve consumers may extend to fulfillment of prescriptions and other supplies. However, other companies outside of the brand have disregarded these potential issues. For instance, Sam Glick of Oliver Wyman in San Francisco states, “This is not news in terms of jumbo employers being frustrated with what they can get through the traditional system.”

The creators of this healthcare system are breaking into the industry prepared for their employees, but it is obvious that they are not bringing anything new to the table. The problems that occur in the healthcare industry will remain without a greater understanding of the demand of the world. However, the healthcare plans they introduce will make medical services more available to the everyday consumer, rather than only covering the patients that can pay the most.

Hopefully, with the support of other major retailers, there can finally be a change in the way that healthcare costs keep rising, while the actual services still are unchanged.

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