Mark Cuban Says, ‘I Don’t Know Cars Or Rockets,’ But Schools Elon Musk On How American Health Insurance Works

When Elon Musk took to X to query why Americans aren’t “getting their cash’s value” regardless of the United States main the world in well being care administrative prices, Mark Cuban stepped in with some powerful truths. Cuban, recognized for his straight speak and deep dive into well being care reform, gave Musk and different CEOs a crash course on how their selections straight influence well being care prices and high quality within the U.S.

“The secret’s the contracts CEOs of self-insured firms signal,” Cuban wrote in response to Musk’s tweet. He defined that many of those contracts, particularly with Pharmacy Benefit Managers (PBMs), are on the root of spiraling prices and poor care.

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What’s Wrong With PBM Contracts?

Cuban laid out seven main points with typical PBM agreements that have an effect on not solely firms like Musk’s Tesla and SpaceX but in addition their staff and households:

1. No management over claims knowledge: Companies do not get full entry to the info about what’s being billed or paid.
2. Restricted formularies: PBMs management which drugs are coated, usually prioritizing income over well being.
3. Overpriced “Specialty Drugs”: These are sometimes marked up with out justification.
4. Rebates come at a price: “Rebates” paid by pharmaceutical firms finally enhance worker deductibles and co-pays, hitting the sickest and oldest the toughest.
5. Harming unbiased pharmacies: PBMs usually reimburse small pharmacies lower than the price of brand-name medicine, driving many out of enterprise.
6. No producer collaboration: Companies cannot straight work with drug producers to create focused wellness packages.
7. Opaque contracts: Many PBM agreements embrace NDAs, making the system inefficient and growing costs nationwide.

“All of this enables the massive PBMs to proceed to distort the pharmacy marketplace for actually EVERYONE,” Cuban emphasised.

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What CEOs Can Do

Cuban did not simply spotlight issues – he provided options. He known as on Musk and different CEOs to take management by straight contracting with well being care suppliers and dealing with “pass-through” PBMs that prioritize transparency and decrease prices. Cuban additionally advised that educating CEOs on these practices ought to be a precedence for Musk’s future company, the Department of Government Efficiency (DOGE).

“It begins and ends with educating CEOs like your self, of self-insured firms, to do what’s in one of the best curiosity of their staff and households,” Cuban wrote.

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He additionally warned concerning the authorized dangers for firms that ignore these points, citing them as an indication of what is to come back. There “will probably be ubiquitous class motion lawsuits coming for all CEOs subsequent,” he warned.

Cuban clarified that whereas he may not “know vehicles or rockets,” he is aware of how you can repair well being care. His message to Musk – and different CEOs – was simple: the facility to vary the system is of their fingers. By prioritizing transparency and higher contracts, they will make an enormous influence on the fee and high quality of well being look after tens of millions of Americans.

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