The U.S. pharmaceutical marketspace has been plagued by factors that increase the costs for employers, patients, and insurers, which leads to steep markups and complexity. Over the past few decades, major companies like Mark Cuban’s Cost Plus Drugs have been challenged by a wave of disruption.
In the year 2025, Mark Cuban is in talks with Humana to launch a new model of drug distribution, which can serve patients and employers alike.
Here we break down why it matters, what is happening, and what to look for when this partnership unfolds.
What Is Cost Plus Drugs And Why Does It Matter?
Let’s have a closer look at what is being transformed.
The Origin Story
Mark Cuban’s very own company, Cost Plus Drugs, kicked off in January 2021. Consequently, the idea and vision were bold and simple: ignore the middleman, reach manufacturers directly, and sell medicine at a flat price.
For consumers, this particularly means that the cost, including a 15% markup, is based on the shipping fees pricing model.
Also, Cuban’s company has extended its reach beyond the consumers and contains thousands of generic medicines. Cost Plus Drugs also works with pharmacy-benefit managers (PBMs), further targeting health systems and self-insured employers.
Why This Partnership Is Important?
The features listed below demonstrate the importance of the partnership between Cost Plus Drugs and Humana. Let’s have a closer look at them.
- Transparency: Cost Plus Drugs openly shows customers what they pay for medicines, and the markup is included in the price. They do not hide any fees or rebates, unlike traditional pharmacy-benefit managers (PBMs).
- Affordability: In addition, many common prescription medications and generics are cheaper than those at regular pharmacies.
- Flexibility for employers. Likewise, through direct-to-consumer and partnerships, the company offers employers a path to achieve mainstream affordability of medicines by avoiding inflated PBM markups.
What’s New: Humana & Cost Plus Drugs Exploring Partnership
Humana’s services arm, CenterWell, and Cost Plus Drugs are having discussions to celebrate their partnership as per the healthcare media reports in December 2025.
The major aim behind this move is to build a direct relationship with the employer pharmacy model and to support lower drug costs for employees.
Some Important Factors
Let’s list some of the significant factors of this partnership;
- The employer market is huge: Meanwhile, over 160 million employees have insurance through their employers, as Mark’s company started focusing on individuals. This makes these programs a crucial lever for scaling large impacts. Hence, Mark pointed out this as his core inspiration.
- Existing frustration with PBMs: The traditional PBM market has longstanding complaints, which center around unpredictable markups, zero transparency, and rebates. Further, the partnership between Humana and Cost Plus Drugs is focusing on bypassing the chain.
- Increasing pressure for affordable healthcare: Along with deductibles, out-of-pocket costs, and rising premiums, employers and patients want to lower costs. Especially those people who come for routine checkups with prescriptions.
The CEO of Humana’s service arm, CenterWell, ensures that delivering the medications with transparency is the key. They made sure that it aligns with their broader vision to develop a consumer-first business model.
How the New Model Might Work?
Although the details have not yet been disclosed and remain under negotiation, public statements most likely outline a model. Employees will be able to access generics at their cost-plus prices. In addition, insurers or employers combine Cost Plus Drugs’ pricing model into the benefit, rather than depending on traditional PBMs.
High-demand medications, especially for obesity and chronic diseases, are routed through Cost Plus Drugs and CenterWell to ensure affordability. If implemented, this will showcase a radical transformation in how prescription drugs are delivered to Americans.
All of this happens with more predictability, simpler logistics, and a reduction in costs.
What’s Already Working for Cost Plus Drugs: Momentum & Recent Wins
Undoubtedly, even before the talks with Humana, Mark’s company, Cost Plus Drugs, developed a record of expanding partnerships and reach.
A collaboration with CHS (Community Health Systems), which is a form of network allowing CHS-supported hospitals to buy certain medications through the Cost Plus Drugs marketplace. Some of the reports suggest that it will allow hospitals to generate hundreds of thousands of dollars in annual savings.
Recent partnership with SmithRx (a PBM) offers clients access to roughly priced autoimmune medications and generics. Further saving $9.5 million within six months to the clients.
A cardiometabolic provider, 9amHealth, collaborated with Cost Plus Drugs. They provide bundles of clinical care, low-cost medications, and cardiometabolic disease as per the employer health plans. This move points towards comprehensive, prescription management, and chronic care at low prices.
These recent developments highlight that Cost Plus Drugs is not just a small-scale or niche startup. Instead, it is expanding the relationships with hospitals and employers, further pushing towards a model for mainstream healthcare.
Challenges & What Could Go Wrong
While Mark Cuban’s promise is important, there are uncertainties ahead.
Scale and Volume Requirements
Large plans for employers and insurance do need a huge volume to ensure transformation. Thus, transitioning from pharmacy-benefit managers to a pellucid business model is both operationally and contractually hard.
Provider and Regulator Resistance
The pharmaceutical supply chain is traditionally entrenched. Some of the benefit managers, including regulators, are not in favor of rebate-driven pricing or transitioning to transparent models.
Margin Sustainability for Cost Plus Drugs
Cost Plus Drugs is working on a very slim markup model, which is 15% including fees. Hence, scaling in a profitable manner while also maintaining the prices required tight distribution control, and high volume
Regulatory and Supply-Chain Constraints
Also, handling manufacturing, sourcing generic medicines, and drug availability especially in between global pressures, remains challenging.
Despite all of this, the company is tackling all of these challenges pragmatically. Cost Plus Drugs has demonstrated adaptability through its recent partnerships with hospitals and chronic-care providers.
Takeaway
Mark Cuban’s ongoing talks of a potential partnership between Cost Plus Drugs and Humana offer a promise of an alternative to inflated drug pricing.
By cutting out unnecessary middlemen, offering transparency, and working with payers and employers, this new model is built around profit-driven supply chains rather than value.
