Amazon insurance

I have been a careful observer of the health insurance industry for many years and today’s announcement of Amazon’s potential entry into the health care business is a possible game changer. They want to set up a plan that will cover the one million employees who work for Amazon, Berkshire –Hathaway and JP Morgan and then parley that into a national plan. No details were forthcoming but my guess is that it will offer high deductible plans with a company paid for health savings account. Simply put the company sets up a $10,000 annual family deductible plan and puts $10,000 into the health savings account of each family. Each family is then responsible for the first $10,000 of annual expenses due to health care and the plan pays for everything over that. Any money that is not spent accumulates year after year and any unused funds can be part of a tax deferred or perhaps a tax free retirement plan. People will spend these funds wisely and shop around for the best deal on medical care. Providers will be paid up front just like any business purchase and claims will only be filed when they exceed $10,000 and thus eliminating 90% of claims and therefore 90% of administrative cost. The only downside is the loss of many jobs in the insurance industry.