Mark Cuban has a refreshingly blunt explanation for why he decided to take on the pharmaceutical industry with his online pharmacy Cost Plus Drugs: he's wealthy enough not to care about the financial consequences.
"I'm rich as f*** and I didn't care about the money," the billionaire investor said during a recent episode of "The Bulwark" podcast. "My next dollar is not going to change my life."
That financial freedom has allowed him to shake up one of the most expensive healthcare systems in the world.
The Transparency Problem
"We spend more than any other country in the world on healthcare," podcast host Jonathan Cohn noted. "We do not get the results that are much better than the rest of the world and in many ways we get results that are worse."
Cuban agreed, placing blame squarely on the pharmaceutical industry's lack of transparency. The whole venture started with an unexpected cold email from a doctor who wanted to create a compounding pharmacy to address drug shortages. That email sparked Cuban's interest in tackling a much larger issue: the way pharmacy benefit managers manipulate drug prices.
"The greatest lie ever told by PBMs is that they get the best price for you," Cuban told "The Bulwark." These middlemen, frequently owned by massive insurance companies, inflate prices while hiding behind convoluted rebate schemes. Cuban explained that many patients wind up paying full retail prices during their deductible phase, despite PBMs claiming they negotiate lower costs.
That realization led to the creation of Cost Plus Drugs. The platform offers transparent pricing on prescription medications with a straightforward 15% markup. Cuban said the goal was simple: eliminate the games and provide people with affordable access to necessary medications.
"People who can't afford their medications, people who have to ration their medications... if they knew what the price was, then they would have better options," he explained.
From $2,000 To $34.50
Cuban shared a striking example of his platform's impact. A cancer drug that previously cost $2,000 through traditional channels is now available for just $34.50 through Cost Plus.
"Word got around. Cancer patients talk," he said. The company has experienced rapid growth since launching in 2022.
Cuban admitted during "The Bulwark" podcast that if he were younger and still building his wealth, he probably would have followed the same pricing model as everyone else. But at this point in his life, he views using his privilege for something meaningful as an obligation.
Cuban said he's focused on where he can make the most significant difference.
"You can't win all battles," he said. "I'd rather at the end of the day be called the guy who didn't speak up on A, B and C but changed healthcare in the United States."