Loop Capital Markets analyst Anthony Chukumba labels the Amazon (NASDAQ: AMZN), Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) and J.P. Morgan Chase (NYSE: JPM) partnership to form an independent healthcare company for U.S. employees, a "potentially formidable combination." Goals of the partnership include "improving employee satisfaction and reducing costs" with a focus on "technology solutions," "simplified, high-quality and transparent healthcare," while acknowledging the healthcare partnership will remain "free from profit-making incentives and constraints."

Chukumba notes he is "not surprised" by today's announcement, as AMZN typically targets "large and growing industry with relatively high profit margins," or by the lack of focus on profitability, citing a famous Bezos quote: '"Your margin is my opportunity."

The healthcare initiative will fall under the direction of Amazon SVP Beth Galetti, Berkshire Hathaway Portfolio Manager Todd Combs, and JPMorgan Chase Managing Director Marvelle Sullivan Berchtold. The Loop Capital analyst highlights the expertise each member brings to this partnership, writing, "given the combination of Amazon's technological expertise, Berkshire Hathaway's operational experience, and JPMorgan Chase's deep pockets, we are initially optimistic about the partnership's chances of long-term success."

News of the healthcare partnership is not sitting well with investors of the managed care names, as shares of those companies are down significantly in pre-market trading:

• Aetna (NYSE: AET): Down 3%
• Anthem (NYSE: ANTM): Down nearly 6%
• Cigna Corp. (NYSE: CI): Down 6%
• Centene (NYSE: CNC): Down almost 4%
• Humana (NYSE: HUM): Down 5.5%
• Molina Healthcare (NYSE: MOH): Down 4.25%
• UnitedHealth Group (NYSE: UNH): Down over 6%

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