Shaking up the Insurance Industry

Amazon, Berkshire Hathaway, and JPMorgan Chase are teaming up to provide their United States employees with better health insurance.

rising-health-care-costsWhat do you really want when it comes to managing your healthcare? Well, if you asked the leaders of Amazon, Berkshire Hathaway, and JPMorgan last week, they would have answered that you want “transparency, knowledge, and control.”These three companies, which are among the largest and most influential employers in the United States, have combined to create their own independent healthcare company. The partnership was announced in a joint statement by the companies’ chief executives, who said that this venture will be “free from profit-making incentives and constraints” in an attempt to improve employee satisfaction and reduce costs with healthcare options.

Though the announcement came with few details, the effort is sure to shake up the industry as we know it. While an appealing concept for consumers, disruptions similar to these seem to keep affecting the insurance world—as this announcement isn’t the first of its kind. Many companies have pursued similar endeavors in the past and have failed. Additionally, this news came as CVS just revealed their plan last year to acquire Aetna (one of the nation’s leading healthcare benefits companies), which has the possibility of reshaping the healthcare industry by linking it with the pharmaceutical business.

So what does this all mean exactly? On the surface, it’s exciting news; but will consumers really see a difference? Experts say not for a few years. The unique situation of healthcare in the United States is not an easy climate to navigate. Leaders from Amazon, Berkshire Hathaway, and JPMorgan have stated they are aware of these challenges and look forward to bringing their expertise together to find a solution. Until then, we at FARM will keep our finger on the pulse to help our insurance clients navigate the industry climate as it continues to evolve.

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