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Amazon Deepens Its Presence in Health Care Through Signed Agreement with One Medical

August 15, 2022, by New City Insurance

amazon headquaters buildingAmazon, the world’s largest online retailer and leading cloud service provider, recently expanded into health care services. In July 2022, the multinational technology company announced that it will acquire One Medical, the primary care organization.

The deal, valued at approximately $3.9 billion, is one of Amazon’s largest acquisitions. One Medical, a technology-powered primary care organization, is a membership-based service that provides patients with virtual care and in-person visits.

This pending acquisition is expected to directly impact more than 767,000 members across the US. One Medical is currently an employee benefit organization at over 8,000 companies, allowing patients to receive same-day appointments with health providers and virtual care services. Some businesses even have One Medical clinics on-site. This deal is expected to not only affect direct-to-consumer care but also transform employer-based health care.

The Amazon One Medical Acquisition – What You Need to Know

With the One Medical deal, Amazon seeks to establish a platform for users to conveniently schedule appointments, access personal health records, and renew prescriptions. One Medical, which has only been public since 2020, currently operates a sizable network of boutique primary care practices, as well as a range of telemedicine services. Its core mission is to create opportunities to make the health care experience more affordable, accessible, and practical for providers, patients, and payers.

Over the past decade, health care costs have risen faster than wages and inflation. Employers are burdened with the significant expense of offering coverage to workers in an attempt to prevent expensive hospital stays and manage chronic conditions. According to the American Medical Association, health spending in America increased 9.7 percent in 2020 to $4.1 trillion, or approximately $12,530 per person, a major leap from the growth rate of 4.3 percent in 2019.

While the One Medical acquisition may be the latest in Amazon’s journey into health care services, it is not the retailer’s first expansion into the healthcare industry. In 2019, Amazon debuted its health care business, Amazon Care, which works with Care Medical to support patients during their health care journey.

Amazon Care’s core model has always been to deal directly with employers and One Medical’s core model is the same. The Amazon One Medical acquisition seeks to disrupt traditional health insurance by creating and implementing a business model that sends patients to an optimal place to receive care and eliminates as many expensive ancillary services as possible. In terms of additional health care services, such as radiology, lab, and specialty services, Amazon aims to generate a large enough subscriber base to develop a marketplace for referrals.

Effect of the Amazon One Medical Acquisition on Businesses

amazon and one medical logoThe implications of the Amazon One Medical acquisitions are yet to be seen but many industry analysts believe that the deal could make consumer and employee health care more convenient. Amazon wants to bring retail and health care closer together by making it easier for patients to schedule medical appointments, access medical records, and conduct other health-related activities by using their phones or other internet-enabled devices.

In the short term, the acquisition gives One Medical streamlined entry into new markets, such as home-based care services for patients. However, in the long term, it presents the potential for industry disruption.

In time, Amazon will have the means to leverage One Medical’s health system partnerships and employer relationships, make the necessary acquisitions for an insurance-like product, and offer an insurance product to employers. This would essentially cut out health insurance companies almost entirely from the employer market.

With major changes to the healthcare industry expected in the near future, it is important for employers to consider how this acquisition will affect their business and current benefits package. One of the best ways for employers to prepare for these changes is by working alongside an experienced employee benefits consulting firm to analyze their existing offerings and find new ways to save money while providing the same or better coverage to their staff.

Schedule a Consultation with New City Insurance to Get Started

New City Insurance is a reputable employee benefits consulting firm dedicated to helping organizations restructure their employee benefits in a way that delivers noticeable savings without reducing network access or benefits. New City can help businesses build custom plans with major carriers to reduce costs and increase coverage. To learn more or to get started with a New City Insurance benefits consultant, request a consultation online or call 888.210.2765.

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Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
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New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
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I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
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Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
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So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
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So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
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Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
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Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
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22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
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19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
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Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
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I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
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