In wake of rising medical costs in the US, India stands a huge chance to tap into the country’s economy that presently is in need of creative solutions, said Warren Buffett. Medical costs have soared from 5% of GDP to 18% which are currently the highest worldiwide and have gone from $170 per capita in 1960 to $10,000 now and this is what provides Indians a huge opportunity as US economy needs creative solutions, he said during the company’s 2018 shareholders annual general meeting (AGM). “It’s a tape worm eating into the competitiveness of the American businesses,” he added.
Even during last year’s AGM, CEO of Berkshire Hathaway had produced same views when he declared “the ballooning costs of healthcare act as a hungry tapeworm on the American economy.”
On healthcare cost partnership between Berkshire, JP Morgan and Amazon.com
“We simply have three organizations with leaders I admire and trust … We have a hugely non-competitive medical cost in American business relating to any country in the world … The motivations are not primarily profit making. We want our employees to get better medical services at lower cost …. we know the resistance will be unbelievable, and if we fail – at least we tried. I think we’ll probably have a CEO within a couple of months,” Reuters reported him saying.
Earlier, Buffett also said, “Berkshire gains last quarter was enhanced by changes in US income-tax rules. Berkshire operating income was at record high in last quarter. At Berkshire, equity holding is now marked to market daily under the new accounting rules.”
Berkshire Hathaway Inc on Saturday ended its more than year-long stretch of falling operating profit, while a new accounting rule caused the conglomerate chaired by Warren Buffett to suffer an overall net loss. The results were released on the same day Berkshire is holding its annual meeting in Omaha, Nebraska.