Mark Cuban Calls Healthcare Pricing ‘Horrific’– Says Hospitals And Docs Are ‘Sub Prime Lenders’ – However He is Proposing A Means To Repair Issues
Mark Cuban is not holding again in terms of his ideas on the U.S. well being care system. On Bluesky, on Dec. 10, he laid out precisely why he thinks the system is damaged and how he is taking steps to repair it.
His greatest gripe? Hospitals and docs are being pressured into the function of “Sub Prime Lenders” as a result of they bear 100% of the credit score threat for unpaid deductibles, co-pays and coinsurance. “That is insane,” he wrote, including, “Once they cannot accumulate fee, they elevate costs to make up that loss.” In response to him, this results in the “horrific” well being care pricing.
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The ripple results do not cease there. In response to Cuban, hospitals must operate like mortgage mortgage servicers, navigating a maze of administrative prices to gather these unpaid quantities. This cycle pushes many sufferers into medical debt, which regularly results in chapter. In Cuban’s eyes, this is not simply inefficient – it is a humanitarian catastrophe.
Insurance coverage corporations do not get a free cross in his critique, both. Cuban states that for over 50 million Individuals below such plans, insurers do not present conventional insurance coverage. As an alternative, they operate as “care authorizers and fee processors,” figuring out the approval and price of care, with a main concentrate on stopping fraud and assessing medical necessity.
Information from Statista signifies that in 2023, roughly 65% of U.S. employees have been enrolled in self-funded medical insurance plans, the place employers assume direct monetary duty for workers’ medical claims.
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Cuban would not suppose this function ought to fall to insurers in any respect. “That authorization course of is one we shouldn’t be asking ins comps to do,” he argued. As an alternative, he believes unbiased third-party directors (TPAs) with no monetary incentives to approve or deny care ought to deal with this course of. “Step one,” he mentioned, “is for self-insured entities to make use of third-party TPAs and transfer away from insurance coverage corporations for this service.”
