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Three of corporate America’s heaviest hitters—Amazon, Warren Buffett and JPMorgan Chase—sent a shudder through the health business Tuesday after they introduced plans to collectively create an organization to supply their workers with high-quality, affordable care.
Insurance coverage companies say “we will pay X amount,” which is often a low-ball quantity (ever notice these random “reductions” on your explanation of benefits?), so medical doctors compensate by charging extra in order that they will really get a good value.
The 2 forces of demand and supply determine market price. At the same time, the Senate Subcommittee on Main Health and Growing older has sent letters to executives of 14 pharmaceutical companies asking for answers, and on Nov. Employer-sponsored health insurance covers about 157 million people in the U.S., constituting the biggest piece of the nation’s patchwork health care market, and neither firms nor their staff are pleased with the system.
