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Mark Cuban has expanded his ongoing criticism of pharmacy benefit managers to include taxpayer-funded prescription spending for military families, arguing that direct payment to pharmacies would reduce costs for the Department of Defense TRICARE program. According to BenefitsPRO, the founder of Cost Plus Drugs recently stated that paying pharmacies standard cash prices with minimal processing fees to PBMs could generate substantial tax savings. Cuban proposed that alternative payment structures could reduce the excessive intermediary costs resulting from current PBM arrangements serving military beneficiaries at off-base pharmacies. Government Accountability Office. Cuban suggested that current PBM arrangements serving military beneficiaries at off-base pharmacies result in high intermediary costs that could be reduced through alternative payment structures.
The pharmacy entrepreneur founded Cost Plus Drugs in 2022 to reduce generic drug prices by eliminating middlemen and using a cost-plus pricing model. The company sells medications directly to consumers at cost plus a fifteen percent markup, limiting its selection to achieve lower prices. Cuban has consistently criticized PBMs for driving up drug costs through rebate misalignments and unfair reimbursement practices affecting independent pharmacies.
Cuban recently announced that Cost Plus Drugs would participate in Trump Rx, the administration's drug price transparency initiative, providing real-time pricing data through API access. He indicated the increased visibility could drive higher volumes and enable further price reductions.
The entrepreneur also disclosed discussions with Humana about direct-to-employer programs bypassing traditional supply chain layers. Humana CEO Jim Rechtin questioned whether all intermediaries in the current system add sufficient value to justify their costs, noting the complex pathway from manufacturer through hubs, PBMs, distributors, and pharmacies. Humana is expanding its pharmacy operations through its CenterWell division while working to transform beyond its Medicare-focused business model into broader consumer healthcare services.
