Billionaire entrepreneur Mark Cuban has thrown his support behind a sweeping bipartisan effort to dismantle vertical integration in the healthcare industry, urging President Donald Trump to back a newly introduced bill that would force the separation of insurers, pharmacy benefit managers (PBMs), and healthcare providers.
‘No Brainer’ For Lower Costs
Cuban, the founder of Cost Plus Drugs, took to social media early Wednesday to praise the “Break Up Big Medicine Act,” a legislative proposal introduced by Senators Josh Hawley (R-Mo.) and Elizabeth Warren (D-Mass.).
In a post on X, Cuban described the bill as a “no brainer” for the American public.
“Great job @HawleyMO & @SenWarren LOVE THIS,” Cuban wrote. “Anyone in Congress that doesn’t support this, doesn’t want lower cost healthcare for Americans. This is a no brainer. Let’s hope @POTUS puts his weight behind this.”
The endorsement from Cuban, who has become a prominent advocate for drug pricing transparency, puts additional pressure on the Trump administration to adopt a populist stance against healthcare conglomerates.
Targeting ‘Big Medicine’ Monopolies
The legislation is modeled after the 1933 Glass-Steagall Act, which separated commercial and investment banking. It aims to prohibit common ownership between insurance companies, PBMs, and medical provider organizations.
Under the act, integrated giants such as UnitedHealth Group Inc. (NYSE:UNH), CVS Health Corp. (NYSE:CVS), and Cigna Corp. (NYSE:CI) would be required to divest their conflicting subsidiaries within one year.
“There’s no question that massive health care companies have created layers of complexity to jack up the price of everything from prescription drugs to a visit to the doctor,” Senator Warren said in a statement. “The only way to make health care more affordable is to break up these health care conglomerates.”
Senator Hawley echoed this sentiment, stating, “In their quest to put profits over people, Big Pharma and the insurance companies continue to gobble up every independent healthcare provider and pharmacy they can find. Working Americans deserve better.”
Enforcement And Impact
The bill empowers the Federal Trade Commission (FTC) and the Department of Justice to enforce these separations, with penalties including the disgorgement of profits for non-compliance.
By decoupling the entities that pay for care from those that provide it, proponents argue the bill will eliminate self-dealing that currently inflates medical loss ratios and consumer premiums.
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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