To understand this better, take the perspective of big biz for a sec. What does BigBiz want? Simple: $. When? Now and forever, but preferably now. How? Any means they have available.
Right now, big biz is subject to the whims of Aetna, Cigna, BCBS, United health, etc., because their employees have health insurance through these other companies. Their pricing & reimbursement negotiations with hospitals and doctors associations is completely dark to everyone else but the care providers and insurers.
Costs are out of control and BigBiz feels it. A huge amount of time and effort are wasted every year in their HR departments dealing with big insurance and employee issues around health care. A massive waste, and who is sucking it all up? Mainly these nuisance insurers who have a completely opaque price structure and rising costs every year. BigBiz is uncomfortable and seeks control. It will mean a blacker bottom line, instead of this annual leak to other companies.
Perfect storm for BigBiz to get pissed off at other BigBiz and make a play to take the other guys out with a knockout blow and get the costs back under control.
We’ve seen this time and again, notably starting with the railroad wars in the late 1800’s, where BigBiz makes war against other BigBiz for market dominance and control, and it has carried through to recent times with the holy war of Apple vs. Microsoft and the browser wars and now this and everything else going on in BigBizLand.
CVS just bought Aetna. The first major retailer to enter the health insurance marketspace. They wish to control the supply chain triangle from the shipping steps of Big Pharma all the way to the little white bag being handed over the counter at your local drugstore to the billing clerk at your Primary Care Provider’s office and your doctor who prescribes the meds.
Jeff Bezos saw this and thought, well fuck them, I am going to either buy United or Cigna and Walgreen’s or start my own thing. Let’s call up Warren and hear what he has to say about this.
I would expect just what I said: Amazon will buy Walgreen’s in 2018 and United Health in 2019.
Why else would they bring in JP Morgan/Chase? Why not WalMart or someone else with a ton of employees? Because JP Morgan is in this to finance and orchestrate the biggest health care acquisitions in history.
Watch.
p.s.: Honey can you pick up my prescriptions at Whole Foods? And get more milk, please.
pps: Can you also stop in and ask the AmazonUnited rep about adding a dental plan for the kids for next year?
