The joint venture, organized by Amazon's Jeff Bezos, Berkshire Hathaway's Warren Buffett and J.P. Morgan's Jamie Dimon, will aim to be "free from profit-making incentives and constraints," the companies said on Tuesday.
"It's bad enough that the most important man in finance, the most important man in retail and the best investor alive are teaming up to tackle the problems of our health care system, but even worse for the industry, they're doing it for free," the "Mad Money" host said. "It is very hard to compete with someone who doesn't care about turning a profit."
What does that mean for investors? Cramer's answer was somewhat complicated, particularly for investors who can't wait to get in on the action.
"Sure, a stock like Walgreens, down over 5 percent today, [or] UnitedHealth, [down] more than 4 percent, they can rebound," he said. "But if the other companies that have been targeted by Jeff Bezos got hurt, then I think it's the same thing here. I think these kinds of companies are going to have to spend a little time in the penalty box, maybe at lower levels."