Pharmaceutical Drug Prices Could Drop Thanks to Amazon

Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. are forming a new healthcare insurance business to help battle the rising cost of healthcare in the United States

Today, the companies announced a few things that they are rolling out to change the current healthcare system and re-invent the way things are done. This new partnership between billionaires Jeff Bezos, Warren Buffet, and Jamie Dimon might have a chance to change the game by using their technology and knowledge in finance to help to curb the cost of healthcare and prescription drugs.  In other words, the middlemen may be cut out of the equation if this partnership gets their way by bargaining directly with pharmaceutical companies and creating an online system to buy drugs. 

Amazon picked up pharmacy wholesaler licenses in over 12 states last year, causing a few health-care retailers and insurance companies to take notice.

In the past, companies such as CVS and UnitedHealth Group Inc. have tried to rectify the health care situation but were no match for the big pharmaceutical drug companies. Shares of the two companies dropped more than 4% following the partnership announcement.

Currently, about half of the United States population gets their health insurance through their employer. Healthcare costs rose about 5-8% in 2017 according to United States government data