Mark Cuban makes important comments on Biden and Harris’ drug spending plan
President Joe Biden and likely Democratic presidential nominee Kamala Harris hosted a joint event on August 15 at Prince George’s County Community College in Maryland to discuss drug cost policy proposals.
Mark Cuban then shared his view on why drug pricing discussions are important and positive in an email exchange with TheStreet.
The Biden administration has taken measures to reduce drug prices, particularly through the Inflation Reduction Act.
During their appearance, both Biden and Harris announced several new policies with which they intend to continue their efforts.
A key part of this policy, according to the U.S. Department of Health and Human Services (HHS), is that Medicare will negotiate prices with drug manufacturers.
“These negotiated drugs are among the most expensive and commonly prescribed drugs in the Medicare program and are used to treat conditions such as heart disease, diabetes and cancer,” HHS said in a statement. “The new prices will take effect beginning January 1, 2026, for individuals with Medicare Part D prescription coverage.”
The department wrote that, in retrospect, Medicare would have saved an estimated $6 billion if the new prices had gone into effect last year.
“Americans are paying too much for their prescription drugs. That makes today’s announcement historic. For the first time ever, Medicare has negotiated directly with pharmaceutical companies, and the American people are benefiting,” said HHS Secretary Xavier Becerra.
Mark Cuban comments on drug price negotiations
When TheStreet asked him to explain his view, Mark Cuban, co-founder of Cost Plus Drugs, shared his immediate thoughts on the matter in an email exchange.
“I think anything that brings transparency to drug pricing is a positive,” Cuban wrote.
He added a statement that this gives entrepreneurs a new opportunity to evaluate the benefits they offer their employees.
“Now every employer will have a reference price when negotiating prices with their PBM,” Cuban wrote.
More on drug affordability:
A Pharmacy Benefit Manager (PBM) is a company that facilitates negotiations between health insurance companies and pharmacies to negotiate prescription drug benefits. These include CVS Health (CV) Cigna (CI) UnitedHealth (UNH) and Humana (TOTALS) .
Cuban’s Cost Plus Drugs works directly with drug manufacturers, bypassing insurance companies. The price of each drug includes a 15% markup, and the company is transparent about what it pays for its drugs.
A doctor speaks to a Medicare patient in a hospital. Mark Cuban says transparency in drug costs is an important part of health care.
Image source: Shutterstock
The Center for Medicare and Medicaid Services discusses its drug pricing plans
The Center for Medicare and Medicaid Services (CMS) explained its actions to date and its future plans in a statement.
“CMS is proud to have negotiated drug prices for Medicare beneficiaries for the first time,” said Medicare Administrator Chiquita Brooks-LaSure. “These negotiations will not only lower prices for vital drugs for cancer, diabetes, heart failure and others, but will also save billions of dollars.”
“The Medicare drug price negotiations and the lower prices announced today demonstrate the commitment of CMS and the Biden-Harris administration to lower health care and prescription drug costs for Americans,” Brooks-LaSure added. “We made a promise to the American people, and today we are pleased to announce that we have fulfilled that promise.”
The CMS has added a hypothetical example.
“A senior with Medicare taking Stelara pays a 25 percent deductible for the drug, which today could be about $3,400 for a 30-day supply,” it says. “If the negotiated price takes effect in 2026, that same 25 percent deductible would cost the beneficiary about $1,100 before the person reaches the catastrophic cap after which the beneficiary no longer has to pay out of pocket for their prescription drugs.”
