Episode 418: Mark Cuban’s Insights on Reducing Healthcare Costs for Self-Insured Employers
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In Episode 418 of Relentless Health Value, Mark Cuban, CEO and founder of Mark Cuban Cost Plus Drugs, joins host Stacey Richter, and guest Farron Williams, Chief Pharmacy Officer at Scripta, to provide critical advice for CEOs and CFOs of self-insured employers. The podcast delves into the financial intricacies of the healthcare industry in 2023, emphasizing the importance of direct involvement by company executives in managing healthcare benefits to save substantial costs. Cuban discusses how his company saves money on drug costs through transparency and direct purchasing from manufacturers, offering actionable steps for businesses to replicate these savings. The episode also highlights partnerships, like the one between Scripta and Mark Cuban Cost Plus Drugs, and discusses strategies for simplifying the healthcare benefits system. The conversation touches on the broader impact of these practices, legal implications under ERISA, and the importance of financial prudence and transparency in managing healthcare expenditures effectively.
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05:41 What was Mark Cuban’s own journey as a self-insured employer with Cost Plus Drug Company?
06:56 What did Mark find when he decided to go through and look through his company’s benefit program?
08:23 “When you think it through, you start to realize that money is being spent primarily by your sickest employees.” —Mark
09:13 How do you get CEOs and CFOs of self-insured employers to realize that their sickest employees are the ones subsidizing their checks?
12:10 What is the role of insurance in healthcare?
13:42 “If you can’t convince them, confuse them and hide it.” —Mark
14:35 The reality behind getting a rebate check.
15:32 Why are rebates going away, and why isn’t that changing PBM earnings?
18:17 How do you get CEOs and CFOs to dig into their benefits plan?
20:13 Does morally abhorrent move the needle?
20:47 “What we’re trying to do is just simplify the [healthcare] industry.” —Mark
23:33 What’s been changing in consumer behavior?
24:18 “Transparency is a huge part of building that trust.” —Ferrin
24:33 Why CEOs and CFOs really have the power to change healthcare.
31:42 What are Cost Plus Drugs’ plans to expand?
38:36 Where is the future of the prescription drug market going?
41:25 What will happen to the prescription drug market in 10 to 20 years?
47:56 The wake-up call self-insured employers should be acknowledging now.
51:18 Where is the real change in the healthcare industry going to come from?
