In the last days of the year 2025, Mark Cuban shared about his drug costs, as he owns Cost Plus Drugs. His message proves that his warning is simple and precise, and that, at the same time, big pharmaceutical companies often use layered pricing strategies. Now the question that looms is, “Why does Mark Cuban’s drug cost resonate?”
Unlike the new incumbents and traditional players like pharmacy benefit managers (PBMs) and insurers, Cuban pushed back and developed a contrast model. They provide value through deep data on patients and disease management systems.
Mark Cuban claims that complexity can increase the cost and obfuscation. Instead, Cost Plus Drugs offers a modest markup, no hidden charges, and minimal fees, and this creative business model resonated with insurers, patients, and others.
In one of his very impressive statements at the 2025 Healthcare Summit, Cuban said: “We’re treating the whole person plus their wallet.” However, another question could be, why and how in a billion-dollar healthcare marketspace, a simple CPD model will triumph.
The Old Model: Complexity, Middlemen, and Opaque Pricing
Let us have a closer look at the traditional US prescription market and system. Only then can you understand how Mark’s CPD model is unique.
In the old system, a manufacturer used to produce a drug. After that, the manufactured drug passes through pharmacy benefit managers (PBMs), wholesalers, distributors, and retail pharmacies. As a result, there may be negotiated markups, stealth fees, and an endless web of contracts.
Consequently, in this traditional method, the list price is not the same as what patients and insurers have to pay. Even more, the final out-of-pocket cost does not resemble the cost of manufacturing.
In the meantime, Mark Cuban and various analysts pointed out that these intermediaries multiply complexity rather than being commensurate with value. Thus, patients with limited income and employers end up paying more.
This opacity, like hidden markups and rebates, makes it difficult for consumers to compare prices or even understand what they are seeking. Especially in this scenario, patients skip medications and do not fill prescriptions because the drugs are expensive, along with inadequate insurance coverage.
This traditional model of manufacturing and delivering drugs to patients is uncertain, with high inflation costs and zero transparency.
The CPD Model: Cost + 15% + $5 Pharmacy Fee + $5 Shipping
The Cost Plus Drugs model is well-designed and easy to implement, and it is transparent. CPD works by purchasing drugs directly from manufacturers, which cuts out the PBMs and middlemen.
Further, everything is transparent on its website, from the actual cost paid to a 15% markup and a 5% pharmacy fee, to shipping at $5. Because of CPD’s transparent business practices and D2C approach, the drugs are often cheaper than at any traditional pharmacy.
Generic drugs, including special medications, are sold at a small fraction of standard retail costs. Cuban’s owned CPD does not just beat prices of big pharmaceutical companies, but rather, he insured patients against rebates and markups.
Due to the strategy of monitoring both cost and process results, more patients are choosing the CPD model. So, for patients, it provides cost transparency, and for employers, it provides a predictable budget.
Why the Simplicity Resonates Especially Now
Let’s have a closer look at why CPD’s healthcare industry transformation holds huge value, especially in today’s world.
1. Rising Drug Costs, Insurance Woes & GLP-1 Surge
New high-demand medications, such as one of the most popular GLP-1, are used for the treatment of metabolic and obesity diseases. While at this time, when most of the people are either uninsured or underinsured, health-insurance premiums continue to increase. Even generic medicines become unaffordable to them.
At the summit, Mark and his partners leveraged the opportunity to talk about why transparency matters most. In today’s world, transparent and low-cost alternatives are required.
2. Employers Demand Predictability & Lower Costs
Along with the support of the CPD model, employers can gain access to straightforward pricing. Further cutting off PBMs driven by cost inflation, unlike traditionally, wherein they had to maintain a large portion of prescription medicines.
Also, there were talks between Mark Cuban and Humana, further discussing direct-to-employer methods that can bypass PBMs.
This discussion pointed towards the fact that corporate America is now open to simpler drug-pricing models.
This can bring about a major transformation in how US employers shift towards predictable, transparent models.
3. Transparency Builds Trust Among Consumers
For decades, patients lost their trust in the healthcare industry because of the cynical drug pricing. Hidden markups, rebates, and insurance formulas all wiped out their trust.
CPDs and Mark Cuban’s goal is to turn the drug purchase from a black box of hidden fees to something fair and tangible. The Cost Plus Drugs business model makes everything visible to the patients, so that they can know that they are only paying the cost.
Building trust among patients and employers is a must for this model to succeed, as it fuels repeat purchase, along with word-of-mouth referrals.
4. Pressure on Traditional PBMs and Health Industry Giants
The CPD model’s traction has brought pharmacy benefit managers and big insurance companies under pressure. So, their large networks, volume negotiating powers, and justifications are now being re-evaluated due to the model that offers cost with no complexity.
Cost Plus Drugs’ core advantage is radical simplicity. Hence, when the brand’s top USP is cost-saving and transparency, the advantage swings toward companies willing to show their cards.
Why Mark’s Simplicity is Winning
In an industry that has long been defined by hidden markups and opaque pricing structures, the appearance of CPD is nothing short of revolutionary. The Cost Plus Drugs story isn’t a marketing gimmick; rather, it is compelling honesty.
By highlighting to patients the actual price of the drug with no hidden fees, CPD is redesigning what fairness means in drugs. That simplicity resonates with patients, with employers, with insurers.
