Mark Cuban's Cost Plus Marketplace Now Sells Over 6,000 Medicines, Saving Customers Between 40-60% By Cutting Out The Middle Man

Mark Cuban's Cost Plus Drug Company has rapidly expanded over the past year. It offers over 6,000 medicines and provides significant savings to consumers and healthcare providers alike. Cost Plus launched in 2022 and aims to lower prescription drug costs by eliminating the middleman and keeping its pricing transparent. 

The company's Cost Plus Marketplace debuted in February 2024, initially offering over 4,000 medicines. It offered medications that primarily were in short supply in order to directly serve healthcare facilities. Since its debut, the Marketplace has grown to offer more than 6,000 drugs, benefiting thousands of hospitals, clinics, pharmacies, and other medical facilities across all 50 states. 

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The company's chief commercial officer, Alan Bowe, told Becker's Hospital Review that customers have saved between 40% and 60%, compared with traditional wholesalers. 

Several major healthcare organizations have begun purchasing from Cost Plus, including MultiCare Health System in Tacoma, Washington, ScionHealth in Louisville, Kentucky, and Community Health Systems in Franklin, Tennessee. According to Becker's Hospital Review, MultiCare alone saved $1.12 million in just seven months after purchasing 125 generic medications at discounted rates. 

Cost Plus was founded on the principle of making prescription medications more affordable. In the company's mission statement, Cuban wrote, "We started Mark Cuban Cost Plus Drug Company because every American should have access to safe, affordable medicines…No American should have to suffer–or worse–because they can't afford basic prescription medications."

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In the company's mission statement, Cuban emphasized the need for transparent drug pricing and how customers should know exactly how those costs are calculated. The company's pricing model is simple: the cost of the drug plus a 15% markup and any applicable pharmacy fees. 

One example of the company's impact is its pricing for Albendazole, a drug used to treat parasitic infections. Traditional pricing for the drug can reach $500 per treatment. Cost Plus offers it for $35, including pharmacy fees. Its cost for the drug is $26.08. The 15% markup brings it to about $30. Their pharmacy partners charge $5 to prepare and distribute the drug, bringing it to its cost of $35.

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Most insurers and employers contract with pharmacy benefit managers to negotiate and manage prescription drug benefits. This leads to confusing costs and lack of transparency. 

Cost Plus cuts the PBMs out of the equation and allows hospitals and clinics to redirect savings to other critical areas, like patient care and operational improvements. 

Cuban plans to expand the Marketplace this year by adding more brand-name medications and biosimilars. As more people and companies start using this alternative for their prescription drugs, it could set a new standard for drug pricing in the future and further disrupt the industry at large. 

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