Teladoc drops on report that Amazon is building a business to offer primary care for other companies

Reuters

  • Teladoc fell 6% on Wednesday following a Business Insider report that Amazon is quietly building a business to offer primary healthcare services for other large employers.
  • As an extension of Amazon Care, the service would offer in-person and online doctor visits that can be scheduled through a mobile app, according to the report.
  • Shares of health insurance stocks also fell, with UnitedHealth Group and Cigna dropping as much as 2%.
  • Visit Business Insider’s homepage for more stories.

Shares of Teladoc and health insurance providers fell on Tuesday following a report from Business Insider that Amazon is quietly building a healthcare service that will be offered to employee of other large companies.

As an extension of Amazon Care, the service would offer in-person and online doctor visits that can be scheduled through a mobile app, according to the report. The service would bypass health insurance plans and brokers, potentially helping lower the cost of healthcare.

Citing people familiar with the matter, Business Insider reports that Amazon has already pitched the service to Zillow, though its unclear how many other companies were pitched the service offering. 

Zillow confirmed that it was pitched the Amazon Care service but that nothing came of it, according to the report. 

Read more: Amazon is going deeper into the prescription-drug business. Here are the 7 ways the tech giant is taking on healthcare, and why 2 analysts think doctor visits are next.

Amazon’s push into healthcare services has been years in the making, most recently marked by the e-commerce giant’s launch of an online pharmacy. That move sent pharmacy stocks like CVS and Walgreens down substantially.

A similar move played out on Wednesday in shares of Teladoc, which helps facilitate virtual doctor visits for patients via video-calls. Shares of Teladoc fell as much as 6% in Wednesday trades.

Health insurance stocks also fell on Wednesday following the report, with shares of both UnitedHealth Group and Cigna down as much as 2%. Shares of Amazon traded up nearly 1% in Wednesday trades.

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