Billionaire Mark Cuban supports Trump's executive action on drug prices

Mark Cuban’s Enthusiasm for Executive Action

Mark Cuban, who founded Cost Plus Drugs in 2022 to make generic drugs more affordable, expressed optimism about the potential impacts of the order. He specifically highlighted its ability to result in substantial savings on prescription drug costs.

Cuban detailed six specific policies he supports as part of this reform. These policies are designed to alter relationships between drugmakers, pharmacy benefit managers (PBMs), and pharmacies, aiming to reduce prescription costs for consumers.

Among the proposed changes is the separation of formularies from PBMs. Formulary groups would operate without financial incentives, eliminating rebates and introducing transparent net pricing.

Policies for Better Transparency and Pricing

One of Cuban’s key suggestions is to require PBMs to divulge their claims data to employers, states, and drug manufacturers. This would create a better understanding of pricing and rebate structures to foster more competitive pricing.

Another proposal targets the elimination of the specialty tier designation for certain drugs. Cuban remarked, "There's nothing special about specialty drugs," illustrating his argument that such designations unnecessarily increase costs.

Furthermore, Cuban advocates for policies to ensure that all pharmacies are fully reimbursed for brand drugs while doing away with the generic cost ratio.

Regulatory Measures Under the Executive Order

The executive order spearheaded by the Trump administration places significant emphasis on regulatory measures related to healthcare costs. It instructs agencies to draft new regulations focused on Medicare and Medicaid programs.

Among the highlights of these prospective regulations is the adjustment of the drug price negotiation program within the Inflation Reduction Act. The order also calls for steps to make high-cost drugs under Medicare more affordable.

Additionally, it aims to expand access to life-saving drugs by making them more affordable and to import prescription drugs, thereby introducing more competitive pricing.

Mark Cuban’s Role in Influencing Change

The billionaire has made it clear that he is ready to contribute to these healthcare changes. His comment, "Gotta be honest. The @realDonaldTrump EO on healthcare and in particular, drug pricing could save hundreds of billions," reflects his support.

Cuban’s enthusiasm for getting involved was evident when he stated, "Put me in coach," indicating his willingness to help drive these changes forward.

Overall, the reforms proposed in both Cuban's suggestions and Trump's executive order mark a significant step toward transforming the pharmaceutical industry, aiming for greater accessibility and cost reduction in prescription medications.