Billionaire entrepreneur and “Shark Tank” investor Mark Cuban, who launched the pharmaceutical company Cost Plus Drugs in 2022 with the goal of reducing generic drug prices, expressed support this week for President Donald Trump’s latest healthcare executive order. Cuban believes the directive could significantly lower prescription drug costs.
“Gotta be honest. The @realDonaldTrump EO on healthcare and in particular, drug pricing could save hundreds of billions,” Cuban wrote in a post on X.
Despite his long-standing criticism of former President Donald Trump, Cuban outlined six specific proposals that he believes will drive major savings by reforming the relationships among drug manufacturers, pharmacy benefit managers (PBMs), and pharmacies.
Fox Business reports one of Cuban’s recommendations involves separating PBMs from formulary creation and instead assigning that responsibility to independent entities without financial ties to the formularies. He argued this change would eliminate rebates and allow for transparent, net pricing on medications.
Additionally, Cuban called for PBMs to share claims data with employers, state governments, and manufacturers. He noted this could eliminate the need for manufacturers to purchase that data, enabling them to reduce retail drug prices.
Cuban also criticized the classification of “specialty drugs” and the requirement to buy them from designated pharmacies. He stated, “there’s nothing special about specialty drugs,” and claimed the label is often used simply to “jack up the price.”
Further, Cuban proposed that pharmacies be fully reimbursed for brand-name drugs and that the generic cost ratio system be scrapped. According to him, this pricing structure “allows distributors to jack up pricing on generics with the threat of chargebacks and more.”
He also advocated for the elimination of confidentiality clauses that hinder communication between companies and manufacturers, suggesting that greater transparency could result in more competitive pricing and improved patient wellness programs. Finally, Cuban urged an end to PBM-driven biosimilar substitution decisions, emphasizing that patients should receive the most affordable option without PBMs switching them to pricier alternatives.
“Put me in coach,” Cuban concluded in his post, “I’m here to help.”
Fox Business reports that the executive order from the Trump administration instructs federal agencies to draft new regulations and reports targeting healthcare and drug pricing reforms. Among its key objectives are updates to the drug price negotiation program under the Inflation Reduction Act, maintaining stable Medicare Part D premiums, and implementing measures to make essential medications such as insulin and injectable epinephrine more accessible.
The order also seeks to reevaluate the role of intermediaries in the pharmaceutical supply chain to enhance competition and drive down costs. It emphasizes making high-cost medications more competitively priced and supports increasing the importation of prescription drugs, provided safety and quality standards are upheld.