Buffett change healthcare

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It's the result of a lot of talk they've had both formally and informally over the years. Experts say that given the resources of the companies, and their history of concentrating on the long-term rather than just the near-term, they have a chance to make significant changes in the way health care is provided.

Still, it won't be an easy industry to change. The provider markets are very consolidated. The insurance markets are very consolidated. Information is not readily available. And a lot of the money is spent on very ill people," who aren't necessarily concerned about costs. But Claxton and other experts are encouraged to see these three companies partner together to try to make a change.

Health care costs have risen substantially over the past few decades, though the rate has slowed in recent years. Those total costs are split between the employee and the employer. Still, premiums soared for several years a decade ago, pinching workers who didn't see their annual raises keep pace. Related: Warren Buffett is right. Health care costs are swallowing the economy. Companies foot most of the bill, though they have been shifting more of the cost to employees in recent years.

Employees are also getting squeezed because they have to pick up more of the expenses when they actually get medical care these days. Workers are also shelling out more in co-pays and for prescription medication.

Amazon, Berkshire Hathaway and JPMorgan say they plan to focus on their own employees, but Mendelson said that based on his conversations with people involved in the effort, he doesn't expect it to remain limited to that group. But I think their aspirations are bigger than their employee bases," he said.

The joint effort will look to find a more efficient and transparent way to provide health care services to their employees and families, the companies said. Mendelson said it makes sense for the companies to concentrate on giving more information to their employees, since that could have a significant impact on both the cost and quality of health care.

This makes the nation horribly uncompetitive. You're not going to be competitive worldwide. It's an interesting discussion which basically shows how both polarized sides of the current healthcare debate are wrong.

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