"The ballooning costs of healthcare act as a hungry tapeworm on the American economy," said Berkshire Hathaway CEO, Warren Buffett.
Three huge corporate players are teaming up on healthcare by creating an "independent company that is free from profit-making incentives and constraints" for their U.S. employees. "Our group does not come to this problem with answers. But we also do not accept it as inevitable," Buffett says. "Rather, we share the belief that putting out collective resources behind the country's best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes." The healthcare industry has been nervously watching this newfound competition for months. This new team in healthcare could pressure profits for the middlemen in the U.S. healthcare supply chain, according to Bloomberg. "Our people want transparency, knowledge and control when it comes to managing their healthcare," said CEO of JPMorgan, Jamie Dimon. "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." The effort is in the early planning stages and is being spearheaded by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon. The move sent healthcare shares falling in early trading. According to Bloomberg, Express Scripts Holding Co. and CVS Health Corp slumped 6.7 and 5.5 percent, respectively. Also dropping were health insurers Cigna Corp. and Anthem Inc. "Hard as it might be, reducing healthcare's burden on the economy while improving outcomes for employees and their families would be worth the effort," Amazon Chief Executive Officer, Jeff Bezos said. "Success is going to require talented experts, a beginner's mind, and a long-term orientation."
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