Amazon, Berkshire Hathaway, JPMorgan Chase Circle the Wagons to Cut Healthcare Costs

Three gigantic—and extremely wealthy—corporations are joining forces to try to lower what their leadership considers to be exorbitant healthcare costs. Amazon, Berkshire Hathaway, and JPMorgan Chase say they’re forming an “independent healthcare company” specifically for their employees—more than a million people, though not all are in the U.S. The new entity will focus on technological solutions to lower costs, simplify coverage, and increase transparency in employee healthcare. Berkshire Hathaway’s Warren Buffet says the triumvirate “does not come to this problem with answers, but we also do not accept it as inevitable.” Just last week, it was revealed that JPMorgan Chase plans to cut medical-plan deductibles by $750 a year for employees who make under $60,000. Amazon was already making waves in healthcare by virtue of adding supply options to its business-to-business services last year. Healthcare spending across the country grew 4.3% in 2016. At $3.3 trillion, it accounted for 18% of the gross domestic product, according to the Centers for Medicare and Medicaid Services.