Elon Musk Asks for Reason US Can’t Afford Healthcare — Mark Cuban Gives 7 (and a Solution)

Elon Musk isn’t known for mincing words, and erstwhile helium precocious took to X (formerly Twitter) to inquire wherefore the U.S. can’t spend healthcare, helium got an reply helium whitethorn not person expected. Billionaire entrepreneur Mark Cuban didn’t conscionable respond — helium laid retired a scathing critique of the strategy and pinpointed 7 large reasons wherefore healthcare costs are retired of control.

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Musk’s archetypal question, “Shouldn’t the American radical beryllium getting their money’s worth?” cuts to the bosom of the issue. It reflects a increasing sentiment that Americans are paying exorbitant healthcare costs but not receiving capable value.

But Cuban — ever the problem-solver — didn’t halt there. He’s besides presented a bold solution that could upend the pharmaceutical manufacture and unit existent change. The billionaire broke down wherever the strategy is failing and however helium plans to hole it.

Instead of pointing fingers astatine the authorities oregon the strategy astatine large, Cuban argued that self-insured companies are portion of the occupation due to the fact that of the contracts they motion with insurers and pharmacy payment managers (PBMs). These deals, helium claims, fastener businesses into an overpriced strategy that benefits everyone — but the patients and the companies footing the bill.

Here’s the world cheque Cuban dropped connected concern leaders:

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When businesses motion with large PBMs, they springiness up entree to their ain claims data, meaning they can’t adjacent spot wherever their wealth is truly going. No information means nary powerfulness to negociate amended deals.

PBMs — not the companies paying the measure — determine which drugs employees tin access. This often means prioritizing costly medications implicit much effective, cheaper alternatives.

Cuban called retired 1 of the biggest rip-offs successful healthcare — alleged “specialty drugs” that aren’t really special. PBMs people up the price, forcing employers to wage more, adjacent erstwhile identical alternatives beryllium astatine a fraction of the cost.

PBMs operation rebates truthful that the sickest and oldest employees extremity up shouldering the highest costs, starring to higher deductibles, bigger co-pays and worse wellness outcomes.

PBM contracts reimburse autarkic pharmacies astatine rates little than their existent costs, forcing them retired of business. Fewer pharmacies mean little contention — which means higher prices and little entree for consumers.