Mark Cuban Calls Out Elon Musk, Offers Bold Fixes for U.S. Health Care

Mark Cuban Calls Out Elon Musk, Offers Bold Fixes for U.S. Health Care

When Elon Musk took to X to question why Americans aren’t “getting their money’s worth” from a health care system that leads the world in administrative costs, Mark Cuban didn’t hold back. The billionaire entrepreneur and vocal advocate for health care reform provided a blunt reality check, pointing directly to the role CEOs play in shaping health care outcomes.

“The key is the contracts CEOs of self-insured companies sign,” Cuban responded, emphasizing that these agreements, particularly with Pharmacy Benefit Managers (PBMs), are driving up costs while degrading the quality of care.

Cuban’s Critique of PBMs

Cuban detailed seven major problems with typical PBM agreements that affect not just companies like Musk’s Tesla and SpaceX, but also the employees who rely on their health benefits:

1. No Control Over Claims Data: Companies don’t get full access to billing and payment data, leaving them blind to inefficiencies.
2. Restricted Formularies: PBMs decide which drugs are covered, often prioritizing profits over patient health.
3. Exorbitant Specialty Drug Prices: High markups on these drugs lack justification.
4. Rebates with Hidden Costs: While rebates flow to PBMs, employees bear the burden through higher deductibles and co-pays, especially impacting the sickest and oldest.
5. Harm to Independent Pharmacies: Small pharmacies are frequently reimbursed below cost, forcing many to shut down.
6. No Manufacturer Collaboration: Companies are blocked from working directly with drug manufacturers to create tailored wellness programs.
7. Opaque Contracts: Many PBM agreements include NDAs, fostering inefficiency and inflating prices nationwide.

“All of this allows the big PBMs to continue to distort the pharmacy market for literally EVERYONE,” Cuban said, underscoring the systemic nature of the problem.

Solutions Cuban Advocates

Cuban didn’t just stop at criticism—he offered actionable solutions. He urged Musk and other CEOs to take control of their health care contracts by:

• Direct Contracting: Working directly with health care providers to bypass PBMs.
• Partnering with Transparent PBMs: Opting for “pass-through” PBMs that prioritize cost savings and transparency.
• CEO Education: Cuban suggested Musk could use his proposed Department of Government Efficiency (DOGE) to educate CEOs about the profound impact of their decisions on health care costs and quality.

“It starts and ends with educating CEOs like yourself, of self-insured companies, to do what is in the best interest of their employees and families,” Cuban wrote.

A Warning for the Future

Cuban also issued a stark warning about the risks of inaction. He predicted a wave of class-action lawsuits targeting CEOs who ignore these systemic issues, signaling the urgency of reform.

Cuban’s Confidence in Fixing Health Care

While Cuban admitted he doesn’t “know cars or rockets,” he made it clear that health care reform is well within his expertise. His message to Musk and other leaders was simple but powerful: by demanding transparency and signing smarter contracts, they can reshape the health care landscape for millions of Americans.

The takeaway? As Cuban sees it, the power to fix health care isn’t in the hands of policymakers alone—it’s also in the hands of corporate leaders willing to take a stand.