Disruption on the way for health care

Americans on average spent $714, or 1.6% of their take-home pay, on out-of-pocket health care costs in 2016, according to a report from JPMorgan. That was up 3.6% from the year before and up 13.5% from 2013. The bank also found that the US spent 18% of gross domestic product on health care, up from 13% in 2000.


Amazon, Berkshire Hathaway, and JPMorgan Chase are creating a new business designed to lower health care costs for US-based employees in a move that could shake up the managed-care industry.  In fact the stock price of all insurance companies declined on the release.


The companies, which employ a combined 1.1 million people worldwide, plan to create a new, independent company they say is “free from profit-making incentives and constraints.” Initially, the release said, it will focus on technology solutions designed to “provide US employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”

If you were taken by surprise, you obviously live in a cave.  For profit health care has been under attack recently as costs keep rising among some of the highest paid CEO’s in any industry.


While it’s too early to understand what their proposal will be, you can bet that it will get done.   This, in my opinion, is just the start.  There is a lot more to come and don’t be surprised if within the near future a “non-profit” pharma company appears.