Mark Cuban is once again shaking up the economics of U.S. healthcare this time by targeting how hospitals and health systems get paid.
Speaking at the Becker’s Spring Chief Pharmacy Officer Summit in Chicago, Cuban emphasized his mission to challenge what he calls an opaque and inefficient system dominated by insurers. His latest move builds on the success of Cost Plus Drugs, the transparent online pharmacy he cofounded in 2022.
Now, he’s extending that same philosophy into a new platform called Cost Plus Wellness, an “open source” direct contracting model designed to connect self insured employers directly with healthcare providers.
Instead of relying on traditional intermediaries like pharmacy benefit managers or insurers, the platform promotes:
- Transparent, publicly available contracts
- No prior authorization requirements
- No hidden administrative fees
- No balance billing
- Guaranteed payment within 30 days
Cuban argues that the current system allows large, vertically integrated insurers to inflate costs through complexity and lack of transparency. By removing those middle layers, Cost Plus Wellness aims to lower costs for employers while ensuring providers are paid more efficiently.
The platform already includes:
- 27 published contracts
- Over 9,200 providers
- 193 healthcare facilities
One of the earliest major adopters is Baylor Scott & White Health, signalling growing interest from large health systems.
Cuban’s pitch is simple but bold: hospitals may actually lose money on their biggest insurance contracts once administrative burdens, delayed payments and claim denials are factored in.
He encourages health systems to rethink their approach not by immediately abandoning insurers, but by starting direct conversations with employers whose patients they already serve.
The broader context makes his timing strategic. With around 67% of U.S. workers enrolled in self-funded employer health plans and rising frustration over healthcare costs, direct contracting is gaining traction as an alternative model.
Still, Cuban acknowledges the challenge: this shift requires behavioural change across the industry. But his message is clear: health systems don’t have to accept the current structure as the only way to operate.
“It can be done easier,” he said, “but it won’t be easy.”
Leave a Reply