Mark Cuban has never been one to stay quiet about the problems baked into the very system that helped him build his fortune. One issue he’s been especially vocal about is healthcare. The cost of medical care in the United States is off the charts, quite literally.
Americans spent an average of $13,493 per person in 2022, according to the Peter G. Peterson Foundation. That’s more than twice what people in other developed countries pay, for context. Healthcare is also the leading cause of bankruptcy in America.
As someone with resources and business acumen, Cuban sees healthcare as an area full of potential for change and innovation. He already has investments in 17 healthcare-centric startups. These include companies like HiccAway, Mahmee, Mobile ODT, Genetesis, and Biomeme.
Mark Cuban is using investment as a tool to drive change in an industry that desperately needs it.
Mark Cuban Proposes Drug Pricing Changes
The Shark Tank investor is calling for a major shift in how brand-name prescription drugs are priced. He believes the current system inflates costs for both patients and insurers. His proposal is to price all brand drug purchases at their net cost. This means brand drug costs should be based on their net price, after rebates and fees, across all insurance plans, not just those under the Affordable Care Act.
Cuban also suggested adding a rule that would require intercompany transfers between related companies. His ideas show growing frustration with how prescription drugs are priced and the heavy financial strain they place on patients who depend on them.
Mark Cuban’s Cost Plus Drugs Initiative
Mark Cuban co-founded Cost Plus Drug Company in 2016 to make generic medicines more affordable. The company focuses on cutting out middlemen and keeping prices transparent.
The Mavericks owner has put his money where his mouth is. He is behind several health startups developing AI tools and smart medical technologies that aim to reshape healthcare in the U.S. and other parts of the world. Mark firmly believes drug companies and medical institutions should make their costs clear to the public.
In a podcast interview, he said that publishing the full price list for Cost Plus Drugs was one of the best decisions they made because it let anyone compare their prices to what others charge. Transparency has helped lower costs and rebuild trust in an industry known for hidden charges.
A New Model for Reducing Hospital Debt
Mark Cuban has also found a way to take some of the financial stress off hospitals that often get stuck covering unpaid bills. Instead of waiting on payments, his companies pay hospitals upfront. These payments are usually at Medicare rates or even a bit less.
This upfront system saves hospitals time and reduces administrative work. Ergo, in the grand scheme of things, it lets hospitals focus more on patient care instead of chasing costs.
Transparency Could Change the Future of Healthcare
Mark Cuban believes access to healthcare shouldn’t be a pile of forms, unaffordable bills, and confusing fine print. People get buried under paperwork before they even receive proper care.
To tackle this, he has made all his company’s contracts and prices public. This gives patients a clear view of exactly what they’re paying for.
Cuban is working on the business front lines to show that making healthcare affordable is not impossible. When the system is clear and efficient, everyone benefits—patients, the healthcare providers, and the industry alike.
