Billionaire entrepreneur Mark Cuban has expressed approval of a recent executive order by former President Donald Trump aimed at reforming healthcare and prescription drug pricing. Despite Cuban's historical opposition to many of Trump's policies, he praised the initiative for its potential to significantly reduce drug costs. Known for founding Cost Plus Drugs in 2022, a public benefit corporation dedicated to lowering prices for generic medications, Cuban highlighted six specific strategies that could result in substantial savings. These include restructuring interactions among pharmaceutical companies, pharmacy benefit managers (PBMs), and pharmacies to better serve consumers. Additionally, the executive order calls for regulatory changes within the healthcare sector to enhance affordability and accessibility.

In his analysis, Cuban emphasized the importance of separating formularies from PBMs, suggesting that independent entities without financial incentives should be responsible for developing them. This move, he argues, would eliminate rebates and introduce net pricing for prescription drugs. Furthermore, he advocates for PBMs to provide claims data transparency to employers, states, and manufacturers, which could lead to reduced retail prices. Cuban also criticized the concept of specialty tiers, asserting that such classifications primarily serve to inflate prices unnecessarily. Instead, he recommends eliminating this designation to ensure fairer pricing across all drug categories.

Cuban proposed additional measures to improve the system, including full reimbursement for brand-name drugs at all pharmacies and the removal of generic cost ratios. He believes these steps would prevent distributors from artificially inflating generic drug prices. Moreover, he called for an end to confidentiality agreements that hinder communication between companies and manufacturers, arguing that increased transparency will benefit patients through improved pricing and wellness plans. Lastly, Cuban suggested abolishing biosimilar substitution practices to guarantee consumers receive the most cost-effective options.

The Trump administration’s executive order directs federal agencies to create regulations addressing various aspects of healthcare and prescription drug costs. Among its objectives are revising drug price negotiation programs under the Inflation Reduction Act, stabilizing Medicare Part D premiums, and reducing the prices of high-cost drugs for seniors. The order also mandates reevaluating the role of intermediaries in the pharmaceutical supply chain to foster greater competition and lower prices while maintaining safety and quality standards.

Mark Cuban's endorsement reflects a rare alignment with Trump's policy initiatives, underscoring the potential impact of these reforms on both industry practices and consumer benefits. By advocating for transparency, competition, and equitable pricing structures, Cuban envisions a future where healthcare costs become more manageable for all Americans. His proactive stance indicates a willingness to collaborate towards meaningful change in the pharmaceutical sector.