What happens when mega-corporations provide non-profit healthcare for their employees? We're about to find out

The free market works, if it is allowed to work as God intended.

Three corporate giants are teaming up to form their own non-profit healthcare company for employees. Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. will form a new healthcare giant among themselves. The new company could revolutionize the industry. 

LOS ANGELES, CA (California Network) - Healthcare in America may be about to change for the better. Three corporate giants have agreed to work together to form a not-for-profit healthcare company to serve their employees. If the new model works, it could change the industry in America, solving a decades-old ethical dilemma. 

Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. will form the new business. Warren Buffet said in a statement, "The ballooning costs of healthcare act as a hungry tapeworm on the American economy." Buffet has previously called for the government to provide non-profit healthcare to all people, but that does not appear likely to happen soon. 

The American healthcare industry is worth 18 percent of the American economy. Americans spend far more on healthcare than people do in other countries. Americans also receive more care, with about fifteen to a quarter of all tests, procedures, and prescriptions considered unnecessary. Despite all that care, American health outcomes are worse in many categories when compared to people in other countries with socialized healthcare systems. 

Americans dread healthcare bills, reporting that many households cannot afford unexpected illnesses and emergencies. Medical bills are a major factor in many bankruptcies. 

Driving this crisis is the fact that healthcare is provided on a for-profit basis in America. This creates an ethical dilemma since people are making money off the illness of others. 

Government-run health care has been offered as a solution, but there is skepticism of the government's ability to provide timely, effective, low-cost care without ballooning deficits. 

The greatest solution would be one that captures the expertise and efficiency of the free market while also eliminating the profit incentive to raise prices and extract wealth from vulnerable people. The only way to accomplish this without betraying shareholders would be for private corporations to form an independent, non-profit entity. 

The details of the deal remain undecided, but there is reason for optimism. The three companies have vast reserves of cash and private market expertise. While the new company will only serve employees, it could be expanded to include the public. It could also form a new model healthcare organization that others may copy. 

Stocks in traditional healthcare organizations dropped on the news. If the new company is successful, it could provide coverage for millions of people and inspire other companies to do the same. That means a lot of lost business for the profit-driven companies. 

This is an example of a free market doing what it is supposed to do. When prices rise too much, competition enters the market, offering greater value at lower cost. This will put downward pressure on healthcare prices. It's bad news for shareholders, but good news for millions of Americans who simply want to feel better when they are sick, and not go bankrupt in the process.