How Mark Cuban Has Taken Aim at America's Healthcare and Prescription Drug Problem
Famous entrepreneur and “Shark Tank” star Mark Cuban might be a bit of a divisive figure to some based on his political stances and forthrightness in making these well-publicized, but there’s little doubt that his foray into the healthcare arena has made equally significant waves.
In 2022, the Mark Cuban Cost Plus Drug Company (MCCPDC) began operations, selling “generic prescription drugs through a transparent, online direct-to-consumer pharmacy model,” as a JAMA Network Health Forum study noted.
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That 2024 study produced several notable data points, including that savings were achieved in roughly 11.8% of all pharmacy fills as a result, with 5.5% patients with Medicare seeing a reduction in the price of certain fills, 7.1% of those with private insurance reporting the same alongside 9.9% of those with military coverage. However, a full 28.9% of uninsured patients observed savings as a result of MCCPDC prescription fills.
It should be noted, however, that those with Medicaid coverage observed no savings whatsoever.
MCCPDC Targets Middlemen (in the Form of Pharmacy Benefit Managers) in US Healthcare
Also in 2024, shortly following the publication of the above study, the Federal Trade Commission (FTC) published an interim report highlighting just how much power and influence an assortment of middlemen (pharmacy benefit managers, or PBMs) have on Americans’ ability to access and afford prescription drugs. Among the findings:
The six largest PBMs have come to a point where they control nearly 95% of all prescriptions filled in the U.S.
Said PBMs are able to “hike the cost of drugs,” including cancer drugs, and “squeeze independent pharmacies” that many Americans, particularly rural Americans, rely upon.
PBMs and drug manufacturers work together on prescription drug rebates, some of which are designed to lock more inexpensive generic options out of the equation.
Strong PBMs have both the ability and incentive to show favor to “their own affiliated businesses, creating conflicts of interest” that oftentimes put unaffiliated pharmacies on disadvantageous ground while also pushing up the price of prescription drugs.
With Cuban’s letter explaining the reasoning for launching MCCPDC as being one of a disruptor — in an effort “to disrupt the drug industry and to do our best to end ridiculous drug prices” — the motive couldn’t be clearer when it comes to the billionaire’s intent to target the middlemen inhabiting the current system.
Social Media Users Continue To Endorse Mark Cuban’s Philanthropy
In a recent thread on Reddit dedicated to a March TikTok post wherein a very young child named Stella was ostensibly denied medical transport due to an insurance denial — a medical transport required due to advanced complications caused by Stella’s cancer battle and a pursuant viral infection — users both praised Cuban for his quiet philanthropy and criticized the existing American healthcare system.
The top-rated comment simply read “American healthcare is evil,” attracting over 9,000 upvotes and a variety of personal stories reinforcing this take.
Meanwhile, information emerged that Cuban had stepped into pay for Stella’s transport. Despite treatment, however, Stella tragically passed away on April 3, according to local NBC news affiliate KARE 11.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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