As a billionaire, Mark Cuban certainly knows what it takes to maximize revenue and cut costs. The NBA owner, Shark Tank star, and entrepreneur is also well-versed in the healthcare and pharmaceutical industries as well. Becker’s Healthcare covered some of his recent comments, where Cuban took aim at what he views as one of the primary culprits in healthcare spending waste: CEOs.
Writing on X (formerly known as Twitter) in early January, Cuban said most CEOs “don’t know and don’t really want to know where their healthcare benefit dollars are going.” This indifference comes, Cuban wrote, because most CEOs don’t view healthcare as a core business competency. Out comes are almost completely ignored and valuable healthcare dollars are wasted by not scrutinizing increased costs. “They waste a sh-tload of money on less than quality care for their employees, and more often than not, it’s their sickest and lowest paid employees that subsidize the rebates and deductibles,” Cuban wrote.
Cuban has considerable insight in the healthcare sector and has learned plenty about the costs for both employers and workers. He co-founded Mark Cuban Cost Plus Drug Co. in 2020. The online pharmacy launched later that year and today offers more than 2,000 of the most highly used and/or high-cost generic medications. With a standard 15% markup, the prices are significantly less than what most Americans typically pay for prescriptions through insurance.
Rising Healthcare Costs Mean More Opportunity for Waste
There’s no question employers, and their workers, are paying more for healthcare than ever before. With nearly half of all Americans receiving health insurance through their employer, costs to offer coverage are rising for employers. One projection cites an 8.5% increase for employers in 2024—rising to more than $15,000 per employee. That increase is nearly twice that of employers’ healthcare budgets from 2022 to 2023 (4.5%).
This forecast is grim news in light of premium increases over the last decade. In 2022, the annual premium for family coverage averaged more than $22,000, with the worker contributing more than $6,000. This represents a 20% increase over the previous five years and a 43% hike over the previous 10.
While employers’ healthcare costs continue to rise, analysis of those increases, and discovering ways to mitigate them, haven’t risen to the challenge. This was the crux of Cuban’s point: CEOs and their companies need to do more to fight waste in healthcare spending. Despite general awareness of increased premiums and knowing the importance of an appealing health plan to attract talent, they do not actively look for cost reduction opportunities.
“When anything that impacts all of your employees is pretty much a checklist item to the CEO, there is a good chance that it’s not going [to] work well and you are going to have employees who are not comfortable for a lot of different reasons,” Cuban wrote.
Lumina: Helping Employers Battle Waste in Healthcare Spending
Cuban’s remarks come at a time where a shift in employers’ approach to healthcare costs seems imminent. Better cost management is a tool that should see more use as more businesses look to better measure quality of care and outcomes, which can vary widely for covered employees.
At Lumina Imaging, we always focus on balancing high-quality imaging and diagnostics with cost that impacts employers and employees. We’re the partner you need to battle rising healthcare costs. In fact, we can make your plan more efficient in three simple steps:
- Ask your benefits broker for claims analysis to discover your cost inefficiencies
- Compare the cost of your imaging claims to Lumina’s easy, flat-fee structure
- Connect with Lumina for customized medical imaging care
It’s estimated that 15% of benefit plan members will need an MRI or CT scan this year. With medical imaging services that cost up to 80% less than those found in major hospitals, and average plan savings of $1,000 per scan, your benefits plan can see immediate improvement.
Better still, your employees will incur lower out-of-pocket cost without sacrificing quality or convenience. With neighborhood locations around Northeast Ohio, employees can schedule same or next-day appointments and receive results within 24 hours. Lumina uses the latest hospital-grade technology and experienced technologists for the clearest imaging possible.
Ready to improve your benefits plan and limit waste in healthcare spending? Connect with our team today to learn more.
