Mark Cuban Launches Prescription Drug Service, Brings Massive Discounts to Generic Drug Costs
There are many variables contributing to the high cost of living these days, but prescription drugs may be the worst culprit when it comes to Americans' wallets.
Famed billionaire Mark Cuban aims to put a halt to the unfair price control that companies have on the industry, making it more affordable and simpler, through his new website Costplusdrugs.com.
Cornell Assistant Professor of Economics Colleen Carey has a focus in the business of health care, and explains the allure of the new service.
"You don't have to jump through a bunch of hoops, and you know ahead of time what you're getting into, you're not going to show up to the pharmacy and be hit with a $400 bill that makes no sense to you," Carey said.
Cuban's new company, in partnership with Alex Oshmyansky, works like this:
It charges 15 percent on top of the base costs of a medication, to keep the company going. It then adds $3 for production, $5 for shipping --and that's it. The same formula applies to any of the 350 generic drugs that they offer, cutting out the need for insurance, and any other middle man in the equation. You just get what you need, at a price finally meant for you, the consumer.
"I think that certainty is going to be a really nice sales pitch, for American health care consumers, that just feel, sort of, at the mercy of these market forces, and unable to really plan their budgets."
One question Carey has, is how insurance companies are going to react to a potential loss in earnings.
"Are they interested in accommodating this change or are they going to try and fight it, and I suspect the answer will differ based on how much money the insurers is making or losing from the complex distribution network in generic pharma," Carey said.
They do take insurance with select groups like Capital Blue Cross, Rightway, and other select prescription plans -- but their costs, are even below the average co-pays.
"I think that people are going to find this convenient in terms of leaving out the insurance all-together but seeing prices that are more like an over the counter drug."
It's a revolution in big pharma to keep an eye on throughout 2023. If you're interested, head to Costplusdrugs.com and contact your doctor to learn what you may need to set up an account.