Amazon, Berkshire, JPMorgan to Create Healthcare Company • Hacker News Board

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#61

Post by pmart123 » Tue, Jan 30, 2018, 2:09 PM UTC

bpicolo wrote: post #49

jawns wrote: post #7

> The three companies said they plan to set up a new independent company "that is free from profit-making incentives and constraints." I wonder if they will be setting it up as a health insurance cooperative, an organizational structure in which the primary goal is to serve its members, rather than to generate value for external shareholders: https://en.wikipedia.org/wiki/Health_insurance_cooperative It's not at all…

This is something I've been thinking about for a while - what would insurance companies (and even other companies in every vertical) look like with some incentive other than profit? Paying good salaries is one thing, but doing it for the sake of external shareholders is a different case. Newman's Own is one interesting (and successful) example I can think of that's an otherwise for-profit company acting effectively a…

Perhaps Vanguard is an example of a mass mutual company that owes part of its success through its formation due to its ability to pass cost savings back to its customers in the form of lower fund fees?

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#62

Post by odonnellryan » Tue, Jan 30, 2018, 2:15 PM UTC

11thEarlOfMar wrote: post #53

It's not just the cost. It's the incredible inefficiency of the operations, and, the gerrymandering of coverage. Under the ACA, I had to choose between allowing my family to continue to see their lifetime care givers, or, paying in network rates, for the full year, because the insurance company I chose gave me incorrect information when they were trying to get my business (my wife is less kind in evaluating their mot…

I feel Buffet and Bezos have the technical capacity and certainly the capital to tackle this issue.

They can't fix the entire HC market, but they can have a great start.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#63

Post by bedhead » Tue, Jan 30, 2018, 2:16 PM UTC

I have far more faith that these three companies, more than the government, can improve the catastrophe that is our healthcare system.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#64

Post by devonkim » Tue, Jan 30, 2018, 2:17 PM UTC

bpicolo wrote: post #49

jawns wrote: post #7

> The three companies said they plan to set up a new independent company "that is free from profit-making incentives and constraints." I wonder if they will be setting it up as a health insurance cooperative, an organizational structure in which the primary goal is to serve its members, rather than to generate value for external shareholders: https://en.wikipedia.org/wiki/Health_insurance_cooperative It's not at all…

This is something I've been thinking about for a while - what would insurance companies (and even other companies in every vertical) look like with some incentive other than profit? Paying good salaries is one thing, but doing it for the sake of external shareholders is a different case. Newman's Own is one interesting (and successful) example I can think of that's an otherwise for-profit company acting effectively a…

I think you may be thinking about Effective Altruism conceptually but from a corporate rather than individual angle.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#65

Post by allengeorge » Tue, Jan 30, 2018, 2:18 PM UTC

I could be wrong, but if I understand correctly this healthcare company is for their employees only? (At least at first).

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#66

Post by runako » Tue, Jan 30, 2018, 2:19 PM UTC

swarnie_ wrote: post #57

11thEarlOfMar wrote: post #53

It's not just the cost. It's the incredible inefficiency of the operations, and, the gerrymandering of coverage. Under the ACA, I had to choose between allowing my family to continue to see their lifetime care givers, or, paying in network rates, for the full year, because the insurance company I chose gave me incorrect information when they were trying to get my business (my wife is less kind in evaluating their mot…

Hearing the report on Bloomberg news earlier today. Isn't this just for the 900k employees and isn't it just focusing on wearable tech? It sounded more like fitbit with cloud services than insurance.

> Isn't this just for the 900k employees and isn't it just focusing on wearable tech?

I believe it's initially for the employees of those companies. If they can make it work for them, they have a great team (ecommerce, finance, insurance) to back a larger rollout. The announcement says it's about providing healthcare at lower cost with better results, which sounds like a lot more than wearables.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#67

Post by vpeters25 » Tue, Jan 30, 2018, 2:20 PM UTC

Rolling their own health care company might solve only part of the issue. I think the largest driver of healthcare costs right now is price gouging by providers with their charge masters, needless exams and procedures.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#68

Post by noir-york » Tue, Jan 30, 2018, 2:20 PM UTC

Three large employers, realising that for-profit healthcare is expensive and inefficient, create a non-profit that pools healthcare and is driven by its member's interests.

This is terrible if it works.

Imagine if other employers want to join it. And then even more employers... and what if the scheme becomes so large and covering so much of the population that it ... gasp... looks almost like a government-run non-profit health insurance scheme! You know, like what those Marxists in Europe have.

And where it would it end - soon people would be demanding cheaper drug prices and being able to negotiate prices for drugs! Insane

(In case its not clear, the above is written ironicly. I am all for a well funded government-run health service)

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#69

Post by jumbopapa » Tue, Jan 30, 2018, 2:21 PM UTC

ninkendo wrote: post #18

jonwachob91 wrote: post #9

Earlier quoted context omitted.

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

It depends on whether or not you view healthcare as a basic right for citizens (in the same sense as education and law enforcement etc.) The free market coming up with a co-op approach that may only benefit the handful of companies involved only benefits me if I’m in one of those companies.

Any one who is arguing that this is the free market at work doesn't believe that healthcare is a right. You can have access to healthcare, but that doesn't guarantee that you will.

Re: Amazon, Berkshire, JPMorgan to Create Healthcare Company

#70

Post by dexterdog » Tue, Jan 30, 2018, 2:25 PM UTC

noir-york wrote: post #68

Three large employers, realising that for-profit healthcare is expensive and inefficient, create a non-profit that pools healthcare and is driven by its member's interests. This is terrible if it works. Imagine if other employers want to join it. And then even more employers... and what if the scheme becomes so large and covering so much of the population that it ... gasp... looks almost like a government-run non-pro…

Except that it's not a monopoly. There are still options that will compete with each other.