Three premier US based companies (including Amazon) announced they are going to join forces to tackle heath care. They plan to engage this partnership to cut costs and improve services for their estimated one million combined employee base. The announcement stated that this initiative will be an independent company that “is free from profit-making incentives and constraints” (Jeff Bezos, Amazon). This announcement caused a drop in the stock price of many of the big players in the market (Anthem, CVS, UnitedHealth Group) by at least 4%.
There were not many details offered in the announcement, but many analysts feel that the healthcare industry is ripe for a disruption. The combined group is planning on targeting technology and data solutions to help simplify healthcare delivery and want to leverage their combined best talent to solve this problem over time. There are still quite a few skeptics feeling that these three can make a big difference. However, Amazon has disrupted many industries on their astronomical rise. The fact that there was an announcement at all recognizes that there is room for more players in an industry that has not had any new players in many years.
This move is not completely new to the three companies
- Amazon – has been expected to move into health care selling prescription drugs
- Berkshire – owns MedPro Group (liability insurer)
- JPMorgan Chase – their institute studies health care costs.
For more details on the people being asked to spearhead this venture, follow this link
Both employers and employees want improved health care. There have been many Government based attempts and some States are working better than others. It may be time for business to step in and take strides to better an industry that many agree is ready for some big changes.
As exciting as this news may be, HRB Solutions has Health Insurance Options you don’t have to wait for that are proprietary and designed to make the difference employers have been waiting for. For more information or if you want to discuss what this means for your business going forward, please contact us.
For more details on this announcement: