Have you noticed all the business activity in the healthcare industry? Walmart potentially buying Humana and CVS is about to purchase Aetna. Amazon, Berkshire Hathaway, and JP Morgan Chase are forming a not for profit healthcare venture for their employees.
I like Walmart buying Humana because it could result in the 1.5 million Walmart employees getting good healthcare coverage at much lower prices than are available now. The healthcare industry needs to be optimized in the worst way. It is bloated with inefficiencies from top to bottom. A company like Walmart could inject some much needed capitalism in Humana and streamline how healthcare is provided. This could result in doctors getting paid faster and with much less red tape. Insurance costs should drop due to the number of people being covered greatly increasing. Prices for medicines should drop because Walmart would negotiate for lower prices due to their volume of purchases. Walmart could open healthcare clinics in their stores and offer discount medical care for all. Can you imagine a price rollback on flu shots for let’s say 5.00 each.
The Amazon, Berkshire Hathaway, and JP Morgan Chase is yet another example of big business trying to innovate some improvements in how their people get healthcare and at the same time get some kind of control on the price they pay to provide coverage for their employees. Healthcare prices rise way higher than the annual inflation rate in our country. Warren Buffett said “The ballooning costs of health care act as a hungry tapeworm on the American economy,” and he is exactly right. Both Jeff Bezos founder of Amazon and Buffett know that this is a complex issue and will not be fixed overnight. “The health care system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” Jeff Bezos, Amazon founder and CEO, said in the statement. “Success is going to require talented experts, a beginner’s mind, and a long-term orientation.” http://fortune.com/2018/01/30/amazon-berkshire-hathaway-jpmorgan-nonprofit-healthcare/
I think if more mega companies form healthcare alliances it would be a good thing. More workers could get coverage cheaper and what’s most important it would keep the government out of healthcare. Healthcare costs would come under more control and scrutiny. There might even be real competition for your healthcare dollar. That would be a good thing, so from where I’m sitting I hope the healthcare industry is opened up by big business because I think it is a win win for business and the consumer.