>> Three of corporate America's most dominant companies run by the most well known of billionaires are teaming up in a rare collaboration to tackle the most intractable of problems, US healthcare. Amazon, Berkshire Hathaway and JP Morgan Chase announcing on Tuesday they're forming a company aimed at lowering healthcare costs for its US employees, possibly disrupting the entire industry along the way.
Reuters correspondent, Caroline Humer.>> So you could imagine a situation where they take this model, one where they're sort of directly negotiating prices with drug makers, hospitals, medical device makers, showing those prices to their employees, letting the employees figure out where to get the best deal. They lobbied together when the government's changing the law, so it's not a far step to imagine this going further.
>> The venture will be navigating through an industry in a state of flux, with a potential overhaul of the Affordable Care Act, changes to Medicaid, and rising medical costs. In a statement, Amazon founder and CEO Jeff Bezos said quote, hard as it might be, reducing healthcare's burden on the economy while improving outcomes for employees and their families would be worth the effort.
>> Amazon has already started doing a few things in healthcare that we know about, and there's been a lot of media reports and Wall Street speculation about them getting into the pharmacy business.>> That has sent tremors through the pharmaceutical supply chain, and those are not the only tremors.
Shares of companies across the health care industry dropped sharply in Tuesday trading, with investors worried that with these CEOs giving their attention to health care costs, health care profits could get squeezed.