Three giants to combat the US economy’s ‘hungry tapeworm’: its healthcare
Amazon, Berkshire Hathaway and JPMorgan Chase want to offer healthcare transparently and at a lower cost; health insurers’ and pharmacies’ shares drop on the news
New York/London — Three corporate giants are teaming up to combat what billionaire Warren Buffett calls a "hungry tapeworm" feasting on the US economy: healthcare. Amazon, Buffett’s Berkshire Hathaway and JPMorgan Chase said they plan to collaborate on a way to offer healthcare services to their US employees more transparently and at a lower cost. The three companies plan to set up a new independent company "that is free from profit-making incentives and constraints", according to a short statement on Tuesday. The move sent shares of healthcare stocks falling in early trading. Express Scripts Holding and CVS Health, which manage pharmacy benefits, slumped 6.7% and 5.5%, respectively. Health insurers Cigna and Anthem also dropped. The healthcare industry has been nervously eyeing the prospect of competition from Amazon for months. While the new company created by Amazon, Berkshire and JPMorgan would be for their US staff only, this is the first big move by Amazon into the industry. T...
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