Hims House Ep 30 - Mark Cuban on Cost Plus Drugs, Hims & Hers, and the Future of Healthcare
May 13, 2025
Mark Cuban, the dynamic entrepreneur and owner of the Dallas Mavericks, shares insights on his latest venture, Cost Plus Drugs. He unravels the complexities of the healthcare system, exposing the opaque role of Pharmacy Benefit Managers. Cuban discusses his mission to ensure affordable medications and the significance of transparency in pricing. He also compares Cost Plus Drugs with Hims & Hers and explores the future of personalized medicine, technology, and international expansion in healthcare.
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Healthcare Opacity Drives High Costs
- The healthcare system's failure largely stems from lack of transparency and vested interests promoting opacity.
- Pharmacy Benefit Managers (PBMs) create complexity that hides true costs and inflates prices.
PBMs Profit by Market Manipulation
- PBMs use rebates and spread pricing to generate profits while underpaying pharmacies.
- This opaque financial structure harms both pharmacies and patients by inflating drug prices.
Demand Transparency in Drug Pricing
- Employers should switch from big PBMs to pass-through PBMs for transparency and cost savings.
- Legislators should segregate formularies from PBMs and mandate claims data transparency.