Mark Cuban on Monday urged investors to pressure major U.S. health insurers to address healthcare costs, calling on funds that hold shares in the industry to consider divesting their positions unless insurers change their practices.
Shareholders in the Spotlight
The billionaire entrepreneur said investors who own funds with stakes in major insurance carriers are “part of the cost of healthcare problem,” adding that insurers keep share prices ahead of patients and mislead people to increase profits.
“Those companies put the share price over the health of you, your family, co-workers and friends. The worst part is they will lie and mislead you to make more,” the investor said in a post on X.
Cuban said that 61% of Americans own stocks directly or indirectly and urged investors to use that ownership to pressure the industry.
UnitedHealth Group Inc. (NYSE:UNH), Elevance Health Inc. (NYSE:ELV), CVS Health Corp. (NYSE:CVS), The Cigna Group (NYSE:CI), Humana Inc. (NYSE:HUM), and Centene Corp. (NYSE:CNC) did not immediately respond to Benzinga’s request for comment on Cuban’s remarks.
Insurer Consolidation Draws Political Scrutiny
The debate also centers on vertical integration, with companies such as UnitedHealth, CVS Health and Cigna operating businesses across insurance, pharmacy services, and other parts of healthcare.
Sen. Elizabeth Warren (D-Mass.) on Sunday said a healthcare company can own a patient’s doctor, pharmacy, insurance and the intermediary between the pharmacy and insurer, adding that the structure leads to higher costs for consumers and greater profits for large companies.
She called the setup “not right” and backed the bipartisan Patients Before Monopolies Act, which she co-sponsored with Sen. Josh Hawley (R-Mo.).
The legislation would prohibit common ownership of insurers and pharmacies and require affected companies to divest those holdings within a year.
Cuban Has Built a Different Drug Model
Cuban co-founded Cost Plus Drug Company in 2022, with an aim to lower prescription drug costs by eliminating the middleman and keeping its pricing transparent.
He has accused vertically integrated healthcare companies of taking advantage of employers’ reluctance to switch providers, while brokers and consultants may discourage changes because switching can create additional work.
Benzinga edge rankings indicate UnitedHealth has a Momentum score in the 90th percentile and a Growth score in the 25th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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