It's unique for two specific reasons:

These three companies are using their own employee populations to "test" some ideas that could have a broader reach in the future. In the next few years, the companies are projected to provide health insurance for over 1 million employees and 2.5 million members in the US. Based on the average employer spend per employee, these three companies are looking to pay a combined $14 billion dollars annually on health care costs. This strategic partnership with such a large population will create opportunities to reduce cost, improve transparency, and build technological solutions.

While each company is an expert in their own industry, none of them know health care. They might not KNOW health care, but they sure spend a lot on it. health care spending is a major expense for employers and can cause a competitive disadvantage. Starbucks spends more on employee health benefits than on coffee beans, and GM spends more on it than on steel.

During my time at Amazon, we entered product categories that weren't our expertise. We were known for selling books and CDs, but broke into the footwear and clothing market. To gain expertise fast, Amazon would sometimes acquire industry innovators. One of the best-known acquisitions was Zappos, an expert in the footwear industry with great insights, innovation and a relentless focus on customer experience. Amazon became a student of Zappos and as a result is now the top retailer for footwear in the US. I think this deal opens opportunities for more partnerships with health care leaders and experts who have proven to bring innovation and customer-focus.

Instant Insights /

The Amazon collaboration: 5 thoughts for benefits brokers

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