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Amazon, Berkshire, JPMorgan to Create Healthcare Company

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Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#31

Post by robbiemitchell »

ceejayoz wrote: post #26
robbiemitchell wrote: post #13

Earlier quoted context omitted.

One of the benefits a profit motive brings to insurance companies is pushing back on improper billing by providers (doctors/hospitals) and negotiating lowest possible care and drug rates. Tech-focused insurers like Oscar also invest heavily to help guide members toward better care paths, which if done well lead to better care at less expense (for both the member and insurer). Unrelated: one of the worst parts of insu…

> One of the benefits a profit motive brings to insurance companies is pushing back on improper billing by providers (doctors/hospitals) and negotiating lowest possible care and drug rates. The ACA requires insurers to spend 80% of the premiums they take in on direct healthcare costs for their members. Inflated billing and high drug costs are actually helpful if they want to make a nice big profit. To a point, at lea…

That only applies to the individual market, not employer insurance (small and large group.

Higher medical expenses don’t help. It only creates higher premiums, which members then blame on greed.

There are plenty of legitimate problems with providers, drug laws, and insurers. But insurers definitely don’t benefit from higher expenses.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#33

Post by kogepathic »

criddell wrote: post #28
adventured wrote: post #11

Earlier quoted context omitted.

The US healthcare system worked for the majority of people until roughly the last 15 years, and then it began failing gradually up the income ladder. So if you look more recently, the last ten years in particular, that would be the window where something like this would especially begin to matter. It wasn't done before, because it didn't make sense for large entities to bother; things have gotten bad enough that now…

> Today it's closer to $18,000. Do you happen to know the sources of inflation? Are we consuming a lot more services? Are healthcare providers being paid more? Are healthcare companies getting rich?

One word answer for the rising cost of healthcare in the US: administrators. [1]

[1] https://fee.org/articles/the-chart-that-could-undo-the-us-he...

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#34

Post by criddell »

_r_o_y_ wrote: post #3
qaq wrote: post #2

This sounds very promising especially considering Amazon's logistical expertise and amount of financial resources these 3 companies have.

Hopefully it can materialize into something that can have an impact on the healthcare industry, but it's disheartening seeing no doctors or anyone with medical expertise in the mix.

I think you have more faith in doctors than me. The way the California Medical Association (and the AMA) resist expanding the role of nurses really damaged their reputation for me.

Rising medical costs and increased consumption of medical services is good for physicians.

Freakonomics did a pretty good podcast[1] on the subject.

[1]: http://freakonomics.com/podcast/nurses-to-the-rescue/

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#36

Post by throwaway5752 »

jonwachob91 wrote: post #9
kikoreis wrote: post #5

Tragedy of the commons much? It's disturbing to see corporations occupy the vacuum US policy has left here.

>> occupy the vacuum US policy has left Others might argue this is free market at work.

I wish you were able to get the opportunity to die from undertreated diabetes complications (probably attributable to lack of health insurance coverage) in your 40s instead of my buddy. I mean, I'd rather you both have had coverage and lived long healthy lives, but if one had to go I wish it was the one that supported the cause.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#38

Post by jrowley »

kasey_junk wrote: post #27
_m8fo wrote: post #6

I've always wondered what's stopping someone from creating a non-profit and just having people join it in order to give the non-profit ability to negotiate lower prices. I imagine there's a cost to set this up, but is that cost less than the marginal cost of each employee and the savings they would (presumably) receive if enough people joined?

Kaiser Foundation Health Plans & the Kaiser hospitals are non-profits.

Kaiser is an integrated / commercial HMO too, which means they generally offer higher quality of care.

See more on payer breakdowns vs quality at http://costatlas.iha.org

A full rewrite of this app with more data and better mobile design launches in February.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#39

Post by JumpCrisscross »

tw1010 wrote: post #21

I'm neutral on the particulars of this venture (it's probably positive). But how can anyone argue that the market is efficient when it is possible for companies that "is free from profit-making incentives" to exist? Just curious. How does this example fit into that framework?

> how can anyone argue that the market is efficient when it is possible for companies that "is free from profit-making incentives" to exist?

"Commoditise your complements" is an old and true business mantra. It's the reason it's good business for Google to promote an open web or investment banks to promote mutually-owned, virtually profitless settlement & clearing organizations like the DTCC and SWIFT. Much of the robber baron era's drama centred around steel trying to commoditise railroads, railroads steel, and oil the whole lot.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#40

Post by jrowley »

_r_o_y_ wrote: post #3
qaq wrote: post #2

This sounds very promising especially considering Amazon's logistical expertise and amount of financial resources these 3 companies have.

Hopefully it can materialize into something that can have an impact on the healthcare industry, but it's disheartening seeing no doctors or anyone with medical expertise in the mix.

Indepdent healthcare providers like IPAs / MSOs provide a large chunk of healthcare in the US. I wouldn't be surprised if they are looking to partner with these groups directly.
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