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Mark Cuban Targets Healthcare's Middlemen with Cost Plus Drugs

Yahoo Finance •
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Billionaire Mark Cuban says nothing excites him more than disrupting the U.S. healthcare system. In a recent PBS interview, Cuban described his frustration with pharmacy benefit managers (PBMs) and the lack of transparency in drug pricing. He emphasized that his motivation comes from wanting to expose and dismantle what he sees as a broken system that harms patients and employers alike.

Cuban argues the core issue isn't just high drug prices but the entire structure of American healthcare. He points to PBMs as the key differentiator between the U.S. and other developed nations. These middlemen create massive opacity, leaving patients and employers in the dark about actual costs. Even though healthcare is often an employer's second-largest expense after payroll, Cuban says most have no idea what they're actually paying for.

That frustration led Cuban to launch Cost Plus Drugs, an online pharmacy that operates on radical transparency. The model shows actual drug costs, adds a flat 15% markup, and charges $5 for shipping. Cuban emphasizes that his company publishes a daily price list and remains the only pharmacy doing so. He believes vertical integration among insurers, PBMs, and pharmacies keeps prices artificially high and calls for policy changes to restore competition.