American insurer, Berkshire Hathaway [4], financial holding, JPMorgan Chase and electronic trade giant, Amazon, have brokered a partnership for the establishment of a non-profit health insurance company.
This initiative has been designed to propose affordable health services to 960 000 staff members of the afore-mentioned groups. The scheme will later be broadened to cover the entire American population.
Health service costs have become onerous in the United States. In 2016, health expenses climbed by 4.3% reaching 3 300 billion USD, that is, 10 500 USD per capita. This figure accounts for 18% of the country’s GDP.
Following this announcement, the stock prices of American mega health insurers, such as United Health, Humana and Aetna, have plummeted in Wall Street.