Cuban brand is taking aim at the US healthcare system, arguing that widespread billing abuse by insurers and providers could be a major source of federal revenue, if only they would be held accountable.
“If we fined insurers and providers $100 every time they overbilled, improperly denied care, or misrepresented any amount of out-of-pocket money to the patient, we could pay off the national debt,” the billionaire businessman posted on X last week.
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Cuban said the system is rigged against ordinary Americans who are forced to navigate a confusing maze of billing, denials and surprise out-of-pocket costs. “They play on the fear and information asymmetry that exists in healthcare,” he wrote, calling for the dissolution of the industry’s main players.
“Split them up. Make them divest from non-insurance companies,” he said. “And when we are done with the insurance companies, we will go to the hospitals and then to the pharmaceutical wholesalers. We break them up and make the markets efficient again.”
Cuban’s post came in response to a post by Scalpel policy solutions founder Tanner Aliffwho highlighted new state laws that give patients “deductible credit” for paying cash prices that are lower than what insurance companies typically reimburse. Aliff argued that these laws help patients save money while still making their expenses count toward their annual deductible.
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Aliff explained that instead of “spending their entire deductible for a $6,000.00 MRI fee,” patients in certain states can now pay around $300 cash for the same service and still get credit toward their deductible.
According to Aliff, only four states (Texas, Indiana, Tennessee and Oregon) have implemented some version of this reform.
Cuban praised the effort and called for broader adoption. “If cash payment for everything (health care) could be deducted from your deductible, we could all shop and save money. If your state is not on this list, ask your congressman why not,” he said.
Critics, however, questioned whether the average patient can realistically achieve this. “That you think consumers can actually execute this, in a coordinated way, makes you delusional,” financial planner jae oh he responded. “You clearly haven’t spoken to real people who have an illness. This message is doing more harm than good.”