In this encore episode, Mark Cuban discusses his insights and experiences on disrupting the healthcare and pharmacy benefits landscape with Stacey Richter. This show from last year was one of the most popular episodes of the past year. And it’s also extremely relevant right now, given all of the PBM (pharmacy benefit manager) goings-on, as well as ongoing litigation like the J&J lawsuit, etc. Listen to the show with Julie Selesnick (EP428) for more on that one.
You can find the show notes with all links mentioned and a transcript on our episode page.
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Joined by Ferrin Williams from Scripta, Cuban stresses the importance for CEOs and CFOs of self-insured companies to get actively involved in their healthcare plans to avoid overpaying. The conversation tackles the opaque practices of PBMs, the financialized nature of the healthcare industry, and introduces Mark Cuban's Cost Plus Drugs model which aims for transparency and cost reduction.
Key topics also include the potential legal implications for employers, the importance of trust in healthcare transactions, and the real-world savings and benefits achievable with greater involvement and transparency in healthcare management.
What do all of these numbers have in common: $140,000, $3 million, $35 million, and $3 billion?
These are all actual examples of how much employers, unions, and some public entities saved on healthcare benefits for themselves and their employees. The roadmap to saving 25% on pharmacy spend and/or 15% on total cost of care in ways that improve employee health and satisfaction always begins when one thing happens. There’s one vital first step.
That first step is CEOs and/or CFOs or their equivalents roll up their sleeves and get involved in healthcare benefits.
Read the full article/show notes with all the mentioned links here: https://cc-lnk.com/Encore418
06:29 What was Mark Cuban’s own journey as a self-insured employer with Cost Plus Drug Company?
07:44 What did Mark find when he decided to go through and look through his company’s benefit program?
09:12 “When you think it through, you start to realize that money is being spent primarily by your sickest employees.” —Mark
10:02 How do you get CEOs and CFOs of self-insured employers to realize that their sickest employees are the ones subsidizing their checks?
13:00 What is the role of insurance in healthcare?
14:30 “If you can’t convince them, confuse them and hide it.” —Mark
15:24 The reality behind getting a rebate check.
16:21 Why are rebates going away, and why isn’t that changing PBM earnings?
19:05 How do you get CEOs and CFOs to dig into their benefits plan?
20:59 Does morally abhorrent move the needle?
21:33 “What we’re trying to do is just simplify the [healthcare] industry.” —Mark
24:19 What’s been changing in consumer behavior?
25:04 “Transparency is a huge part of building that trust.” —Ferrin
25:19 Why CEOs and CFOs really have the power to change healthcare.
32:29 What are Cost Plus Drugs’ plans to expand?
39:21 Where is the future of the prescription drug market going?
42:09 What will happen to the prescription drug market in 10 to 20 years?
48:40 The wake-up call self-insured employers should be acknowledging now.
52:02 Where is the real change in the healthcare industry going to come from?
