Billionaire entrepreneur Mark Cuban isn’t shy about proposing solutions to tough economic issues, and healthcare costs have long been among his main concerns. Recently, Cuban made headlines by proposing a couple of bold ideas: making medical school free for students across the United States and expanding Medicare’s access to generic medications.
Find Out: Elon Musk Asks for Reason US Can’t Afford Healthcare — Mark Cuban Gives 7 (and a Solution)
Read Next: 5 Things You Must Do When Your Savings Reach $50,000
His concept has sparked conversation, raising the question: Could Cuban’s innovative approaches realistically reduce healthcare expenses?
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
How Does Free Medical School Help You?
Cuban first raised healthcare industry eyebrows when he responded to Dr. Anish Koka’s tweet, featuring politician and entrepreneur Vivek Ramaswamy, who discussed declining interest among students pursuing careers in medicine.
Cuban argued that the government could eliminate tuition costs for medical students nationwide for less than $2.5 billion annually. He broke down the numbers: Fewer than 25,000 medical students attend school each year, and tuition for most medical schools is generally under $100,000 annually with the exception of a few big pricey ones.
Cuban believes these costs can and should be capped, tied directly to cost-of-living adjustments. “Limit any increases to less than COLA increases and it pays for itself quickly,” he wrote.
By eliminating that significant financial barrier, he argued it would increase “the quality of applications beyond the rich or those who are willing to take on loans, improving diversity as well.”
This strategy would not only increase the number of qualified healthcare providers but also help ensure that medical professionals come from a variety of socioeconomic backgrounds, potentially improving healthcare equity and lowering costs for the average American.
Learn More: Mark Cuban: Trump’s Tariffs Will Affect This Class of People the Most
The Venture Capital Solution
Cuban doesn’t just focus on public funding solutions. He pointed out that substantial venture capital funding already targets healthcare innovations by “looking to use AI to change medicine and care.”
Cuban suggested that these venture capitalists could finance medical school tuition in exchange for a five-year post-graduate commitment to work for their sponsoring companies. “It’s cheaper than competing for them, recruiting and hiring them after their residency,” he wrote.
Increasing the number of healthcare providers, Cuban argued, has clear benefits: shorter patient wait times, improved overall access to medical care, and earlier detection and treatment of illnesses. All these factors could lead to enhanced public health outcomes and reduced long-term healthcare spending.
Disrupting Prescription Drugs
Beyond medical education, Cuban is actively working to disrupt the prescription drug market through his company, Cost Plus Drugs, according to the American Hospital Association. Cuban’s enterprise seeks to dramatically lower drug prices by focusing on generic medications. According to a 2023 report published in the Annals of Internal Medicine, Medicare could have saved up to $3.6 billion by adopting Cost Plus Drugs’ pricing model for generic medications.
But Cuban isn’t stopping at generics. His company is expanding into brand-name drugs, excluding only controlled substances and certain specialty drugs not approved for mail-order distribution. Moreover, Cost Plus Drugs is enhancing patient access by establishing partnerships with independent pharmacists and major retail grocery chains, allowing customers to pick up their medications locally instead of solely relying on mail delivery.
Streamlining Insurance Costs
Cuban’s company is also working closely with healthcare payers to streamline costs. An example is its collaboration with Capital Blue Cross, where members can directly use insurance coverage on the Cost Plus Drugs platform. This simplifies reimbursement processes and potentially reduces out-of-pocket expenses for patients.
While Cuban’s proposals and business models may not entirely solve America’s complex healthcare cost crisis, these approaches could significantly reduce expenses and improve accessibility.
More From GOBankingRates
-
5 Types of Vehicles Retirees Should Stay Away From Buying
-
6 Subtly Genius Moves All Wealthy People Make With Their Money
-
4 Things You Should Do if You Want To Retire Early
-
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: Mark Cuban Says He Knows How To Lower Healthcare Prices — Can He Really Do Anything To Help?
