Mark Cuban Calls Health Care Prices 'Horrible' - Says Hospitals, Doctors Are 'Subcreditors' - But He Offers Ways to Fix the Problem
Mark Cuban has stopped sharing his thoughts on the US health care system. On Bluesky on December 10, he explained why he thought the system was broken. and how he is taking steps to fix it.
His biggest complaint? Hospitals and physicians are being forced to act as "Sub-Prime Lenders" because they assume 100% of the risk of unpaid deductibles, co-payments and reinsurance loans. "It's crazy," he wrote. According to him, this leads to "horrendous" health care costs.
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The the ripple effect doesn't stop there. According to Cuban, hospitals should act like mortgage servicers, saddled with administrative costs to collect these unpaid amounts. This cycle puts many patients into medical debt, which often leads to bankruptcy. In Cuban eyes, this is not only inefficient, but a humanitarian disaster.
Even insurance companies aren't getting free access to his reviews. Cuba says insurers don't offer traditional coverage to more than 50 million Americans under such plans. Instead, they act as "care and payment processors" that determine the authorization and costs of care, with a focus on fraud prevention and assessing medical need.
According to Statista, in 2023, about 65 percent of U.S. workers will have self-funded health insurance plans, with employers taking direct financial responsibility for employee health claims.
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Cuba doesn't think this obligation matters to the insurers at all. "That approval process is something we shouldn't be asking Comps to do," he said. Instead, he argues, independent third-party administrators (TPAs) who have no financial incentive to approve or deny aid should handle the process. "The first step is for self-insureds to use third-party TPAs and opt out of insurance companies for this service."
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