US healthcare stocks were hit hard overnight on news that Amazon has healthcare in its sights, backed by Berkshire Hathaway and JP Morgan. Jamie Dimon summarised plans in saying: “Our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans”.

The three companies employ over 1 million employees in the US, and have a combined market cap of US$1.6 trillion. Bloomberg reports that: “The initial focus of the new company will be on technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent health care at a reasonable cost. In the statement, JPMorgan CEO Dimon said the initiative could ultimately expand beyond the three companies”. Buffett added that:

“The ballooning costs of health care act as a hungry tapeworm on the American economy... Our group does not come to this problem with answers. But we also do not accept it as inevitable.”

In the statement, JPMorgan CEO Dimon said the initiative could ultimately expand beyond the three companies". Article here.