The three companies said in a joint statement that the newly-created business will be a not-for-profit healthcare group, that will use technology to cut costs for employees.
It is unclear whether company workers outside the US will be able to sign up to the venture.
‘Hungry tapeworm’
Warren Buffet, chief executive of Berkshire Hathaway, said the ballooning costs of healthcare currently 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.
“Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes,” Buffet said.
Market halts
The announcement hit Wall Street at 7am on 30 January and within the first two hours of trading the market value of the largest listed healthcare insurance and pharmacy stocks had dropped by billions of dollars.
Metlife stocks were some of the hardest hit, ending the trading day down 8.58%, while United Health, Cigna and Aetna also posted declines.
Jeff Bezos, Amazon founder and chief executive, said he acknowledge that the success of the venture would be a “long-term orientation”.
“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,” Bezos said.
