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Optum, UnitedHealth Group's thriving health IT arm, is suing a former executive to prevent him from taking company secrets to the joint venture (JV) formed by Amazon, Berkshire Hathaway, and JPMorgan Chase, $4 Axios.
Optum's lawsuit alleges that the former Optum executive - who the JV hired in December 2018 - printed out documents on Optum's corporate strategy the same day he interviewed with the Amazon JV in October 2018.
The lawsuit is a glaring indicator that UnitedHealth views the Amazon JV as a legitimate threat. Amazon, Berkshire, and JPMorgan sent shudders through the healthcare industry when they $4 their JV in January 2018 and announced their broad intentions to reduce US healthcare costs. As the largest health insurance company in the US, UnitedHealth can likely withstand Amazon's healthcare play better than most incumbents - but it still has good reason to keep a close eye on the JV.
For example, the corporate trio employs more than $4 workers, giving the JV a solid starting point if it decided to go after incumbent insurers' members. In comparison, much-hyped health insurance startup Oscar Health still only has about $4 members seven years after launching, according to a December 2018 CNBC report.
Further, Amazon $4 pharmacy startup PillPack in June 2018; while Amazon's precise plans for PillPack are unclear, it may look to undercut existing pharmacy benefits managers (PBMs), which serve as intermediaries between pharmacies and insurers. And OptumRx - a subsidiary of UnitedHealth - is one of the three $4 PBMs in the US.
Amazon's top of mind for many other incumbents too: We've also seen $4, $4, and $4 take measures to stave off Amazon within the past year.
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