Hey there, tech fans! Today, we’re diving into how billionaire Mark Cuban is shaking up the U.S. healthcare system with some clever ideas and a big vision.

Mark Cuban believes America’s healthcare is deeply flawed. On the popular Equity podcast, he highlighted that no one really scrutinizes the financial side of healthcare. When you get a prescription, it’s often unclear what the cost will be, making it hard for patients to know if they can afford it.

The core issue? Cuban points out that drug prices are primarily set by pharmacy benefit managers (PBMs), third-party entities that control prescription drug pricing and distribution. Cuban claims drug costs are intentionally opaque, creating an environment where prices can be inflated without transparency.

To combat this, Cuban launched Cost Plus Drugs in 2022. The goal? Show the true cost of drugs, lower prices for consumers, and challenge the traditional drug supply chain. Unlike typical pharmacies, Cost Plus prices drugs based on manufacturing costs, adding a small markup, a fixed pharmacy fee, and shipping costs — no hidden markups or middlemen involved.

For example, a generic chemotherapy drug which might cost thousands elsewhere is sold for about $21 at Cuban’s company. The model is straightforward: the manufacturer’s price plus 15%, a $5 pharmacy fee, and shipping. Cuban’s manufacturing facility in Dallas uses robotics to rapidly produce and distribute drugs, aiming to reduce shortages and improve supply chain efficiency.

He also criticizes the industry’s reliance on overcharging, arguing that big companies justify high prices with claims of funding R&D, but Cuban counters that revenue from top drugs far exceeds these costs. He points out that artificial shortages, driven by manufacturers wanting to jack up prices, also inflate drug prices further.

Cuban’s plan extends into building his own drug manufacturing plants, using robotics to produce drugs quickly and supply hospitals directly, bypassing traditional bottlenecks. His stance is clear: refuse to work with the huge PBMs and industry giants, and instead rely on independent manufacturing and direct sales to consumers.

His advice for other entrepreneurs? Be quick and adaptable, because the big players protect their legacy businesses and slow down innovation. Cuban believes that startups can gain an edge by moving swiftly and rethinking how healthcare and drug supply work in America.