Billionaire investor Mark Cuban said Sunday that healthcare giants hide care costs and should be broken up, calling for bipartisan legislation to make every contract public.
Blames ‘Too Big to Care’ Conglomerates
In a post on X, Cuban said Medicare Advantage is offered entirely by what he called “Too Big to Care” conglomerates, and most workers with self-insured employers get coverage from them too, leaving them with “zero idea” what they pay.
He was responding to Florida orthopedic and spine surgeon John Asghar, who estimated that funding Medicare for All through a payroll tax would require an additional combined employer and employee tax of about 21.4%.
Asghar based his estimate on the Congressional Budget Office’s broadest illustrative coverage scenario, which he said would require approximately $3 trillion in additional annual federal funding by 2030.
Cuban argued the conglomerates hide the real cost of everything covered and paid for in healthcare and should be broken up.
Pharmacy benefit managers owned by the conglomerates have distorted the cost of brand and specialty drugs in a way the Justice Department should investigate, the investor added.
Contracts and Claims Should Be Public
Cuban, who runs Mark Cuban Cost Plus Drug Company, called for bipartisan legislation requiring all healthcare contracts to be public, with no redactions other than personal information.
It would also make de-identified claims available exclusively to state and federal researchers, so they can determine what care and medications could cost.
If the country wants universal care and the federal government negotiates prices, “the information asymmetry is so insane, they will be negotiating blind,” Cuban added
Break Up Big Medicine Bill
Sen. Elizabeth Warren (D-Mass.) and Sen. Josh Hawley (R-Mo.) introduced the Break Up Big Medicine Act in February, which would bar a parent company from owning both a medical provider and a pharmacy benefit manager or health insurer.
Last week, CVS Health Inc. (NYSE:CVS) announced plans to separate its healthcare solutions business from its retail pharmacy business, with CEO David Joyner telling CNBC that the company is making the move “out of a position of strength.”
However, Warren said the split lets CVS stay a massive conglomerate and rip people off, while Cuban said it changes nothing for patients or anyone who pays for insurance or care.
Price Action: On Friday, CVS’ shares closed 3.10% higher at $83.85, and in early premarket trading on Monday, the stock was up 0.99% at $84.68 in early premarket trading on Monday.
Benzinga Edge rankings indicate CVS’ stock has a Momentum score in the 35th percentile with a Value score in the 42nd percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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