Please ensure Javascript is enabled for purposes of website accessibility
Buffetcare Health Insurance, Anyone? How About Amazoncare?
bill-new-mug-002
By Bill McEwen, News Director
Published 6 years ago on
January 30, 2018

Share


Opinion by
Bill McEwen
Obamacare is being reduced to a faint pulse. Trumpcare isn’t fully formed, and likely will never be.
So why wouldn’t three American billionaires put their ingenuity and their bankrolls into creating a health insurance company to service the needs of their employees?
“The ballooning costs of health care act as a hungry tapeworm on the American economy.” — Warren Buffett
Warren Buffett, Jeff Bezos and Jamie Dimon delivered the shock felt around the news world — and the stock markets — Tuesday by revealing they would team up to provide their U.S. workers and families with a better option on health care.
Their health insurance company doesn’t have a name yet.

Health Stocks Fall Tuesday

But the mere announcement of their plans sent health-care stocks tumbling. According to CNN Money, top insurer UnitedHealth fell 3%, as did Aetna and Humana. Meanwhile, Cigna and Anthem dropped more than 5%. The carnage didn’t end with the big insurers. Drug-store titans CVS and Walgreens each fell more than 4%, CNN Money reported. And pharmacy benefits manager Express Scripts plunged almost 7%.
To be fair, CNBC reported Tuesday that shares of Berkshire and J.P. Morgan were off slightly, while Amazon edged higher.
“The ballooning costs of health care act as a hungry tapeworm on the American economy,” Buffett said in a prepared statement. “We share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”
It isn’t a tapeworm — either real or metaphorical — that is making the health-care kingpins sweat. It’s the prospect of Buffett, Bezos and Dimon successfully shaving costs and improving outcomes for their employees and then taking what they learn into the entire U.S. market.
“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,” Dimon said.

The statement announcing the formation of the new company said that it would be “free from profit-making incentives and constraints.”
Something else surely caused alarm. The statement announcing the formation of the new company said that it would be “free from profit-making incentives and constraints.”

Health Care Reform Is Difficult

Perhaps now is a good time to consider a contrarian scenario. American health care is an untameable beast fed by countless competing agendas. It will never be reformed, and costs will always rise. And it’s not like mega-companies such as United Health, Humana and CVS are small potatoes. They aren’t accustomed to losing money or market share.
According to this scenario, there is nothing here really to look at. Other than the fact that several hundred thousand folks working at Bezos’ Amazon, Buffett’s Berkshire Hathaway, and JPMorgan Chase (where Dimon is the CEO) might get good health-care insurance at lower rates.
Bezos acknowledged the challenge ahead, saying, “The health care system is complex, and we enter into this challenge open-eyed about the degree of difficulty. Hard as it might be, reducing health care’s burden on the economy while improving outcomes for employees and their families would be worth the effort.”

What This Big Three Bring to the Table


The GEICO gecko
The names Bezos, Buffett and Dimon are synonymous with success and wealth, as are their companies.
But they also bring an interesting synergy to the health-care table.
Amazon is the master of innovation, distribution and cost-cutting.
JP Morgan Chase obviously knows regulatory issues, money and banking.
And Berkshire Hathaway?
That auto insurer whose ads feature a gecko? Yes, Buffett’s company owns GEICO.
Good luck, gentlemen.

DON'T MISS

Fresno Needs More Grocery Stores. Would Change to Local Liquor Law Help It Happen?

DON'T MISS

First Disease Deaths Reported in Flooded Southern Brazil; Surge in Fatalities Expected

DON'T MISS

Cal Chamber Identifies Fewest ‘Job Killer’ Bills Since 2001

DON'T MISS

Fox’s Greg Olsen Wins Top Analyst at Sports Emmy Awards

DON'T MISS

Rookies Clark, Reese & Brink Send WNBA Ratings Soaring

DON'T MISS

Asian American, Pacific Islander Latinos in the US See Exponential Growth, New Analysis Says

DON'T MISS

Central Unified Gets $8 Million Grant to Bring Community Services to Schools

DON'T MISS

RNC HQ Evacuated: Blood Vials Addressed to Trump Prompt Security Alert

DON'T MISS

U.S. Existing Home Sales Drop 1.9% in April, Pushed Lower by High Rates and High Prices

DON'T MISS

Stenhouse Fined $75,000 by NASCAR, Busch Avoids Penalty for Post All-Star Race Fight

UP NEXT

First Disease Deaths Reported in Flooded Southern Brazil; Surge in Fatalities Expected

UP NEXT

Cal Chamber Identifies Fewest ‘Job Killer’ Bills Since 2001

UP NEXT

Fox’s Greg Olsen Wins Top Analyst at Sports Emmy Awards

UP NEXT

Rookies Clark, Reese & Brink Send WNBA Ratings Soaring

UP NEXT

Asian American, Pacific Islander Latinos in the US See Exponential Growth, New Analysis Says

UP NEXT

Central Unified Gets $8 Million Grant to Bring Community Services to Schools

UP NEXT

RNC HQ Evacuated: Blood Vials Addressed to Trump Prompt Security Alert

UP NEXT

U.S. Existing Home Sales Drop 1.9% in April, Pushed Lower by High Rates and High Prices

UP NEXT

Stenhouse Fined $75,000 by NASCAR, Busch Avoids Penalty for Post All-Star Race Fight

UP NEXT

Senate Confirms 200th Federal Judge Under Biden as Democrats Surpass Trump’s Pace

Bill McEwen,
News Director
Bill McEwen is news director and columnist for GV Wire. He joined GV Wire in August 2017 after 37 years at The Fresno Bee. With The Bee, he served as Opinion Editor, City Hall reporter, Metro columnist, sports columnist and sports editor through the years. His work has been frequently honored by the California Newspapers Publishers Association, including authoring first-place editorials in 2015 and 2016. Bill and his wife, Karen, are proud parents of two adult sons, and they have two grandsons. You can contact Bill at 559-492-4031 or at Send an Email

Fox’s Greg Olsen Wins Top Analyst at Sports Emmy Awards

2 hours ago

Rookies Clark, Reese & Brink Send WNBA Ratings Soaring

2 hours ago

Asian American, Pacific Islander Latinos in the US See Exponential Growth, New Analysis Says

4 hours ago

Central Unified Gets $8 Million Grant to Bring Community Services to Schools

4 hours ago

RNC HQ Evacuated: Blood Vials Addressed to Trump Prompt Security Alert

4 hours ago

U.S. Existing Home Sales Drop 1.9% in April, Pushed Lower by High Rates and High Prices

4 hours ago

Stenhouse Fined $75,000 by NASCAR, Busch Avoids Penalty for Post All-Star Race Fight

4 hours ago

Senate Confirms 200th Federal Judge Under Biden as Democrats Surpass Trump’s Pace

4 hours ago

Mobile Home Park Bankruptcy Throws Wrench in Fresno’s Plan to Protect Tenants

4 hours ago

Graceland Foreclosure Sale Halted as Presley Estate’s Lawsuit Moves Forward

4 hours ago

Fresno Needs More Grocery Stores. Would Change to Local Liquor Law Help It Happen?

The Fresno City Council will discuss Thursday reversing the part of a local law that requires grocery stores wanting to sell alcohol to spen...

9 mins ago

9 mins ago

Fresno Needs More Grocery Stores. Would Change to Local Liquor Law Help It Happen?

47 mins ago

First Disease Deaths Reported in Flooded Southern Brazil; Surge in Fatalities Expected

2 hours ago

Cal Chamber Identifies Fewest ‘Job Killer’ Bills Since 2001

2 hours ago

Fox’s Greg Olsen Wins Top Analyst at Sports Emmy Awards

2 hours ago

Rookies Clark, Reese & Brink Send WNBA Ratings Soaring

4 hours ago

Asian American, Pacific Islander Latinos in the US See Exponential Growth, New Analysis Says

Photo of Central Unified School District Administration sign
4 hours ago

Central Unified Gets $8 Million Grant to Bring Community Services to Schools

4 hours ago

RNC HQ Evacuated: Blood Vials Addressed to Trump Prompt Security Alert

MENU

CONNECT WITH US

Search

Send this to a friend