Cost Plus Drugs and Humana Explore Partnership to Tackle Employer Drug Costs

Mark Cuban's Cost Plus Drugs and Humana are in discussions to potentially partner on a groundbreaking initiative aimed at reducing prescription drug costs for employers. This collaboration could reshape the pharmaceutical landscape by offering a more transparent and cost-effective alternative to traditional pharmacy benefit managers (PBMs).

Innovative Partnership Aims to Disrupt Pharmaceutical Pricing

Cost Plus Drugs, founded by entrepreneur Mark Cuban in January 2022, has made waves in the pharmaceutical industry with its direct-to-consumer model that bypasses middlemen to offer lower drug prices. The company, which now carries over 2,500 medications, is looking to expand its reach through strategic partnerships.

Humana's CenterWell, a growing healthcare services arm providing primary care, home health, and pharmacy services, has emerged as a potential collaborator. The partnership could leverage CenterWell's expertise in healthcare delivery and Cost Plus Drugs' innovative pricing model to create a direct-to-employer program for prescription drugs.

"We need to partner with folks that extend our access so that we can support more consumers," Cuban stated at the 2025 Forbes Healthcare Summit. He emphasized the potential of the direct-to-employer market, noting that "160-plus million people are getting their insurance through private or public employers."

Streamlining the Pharmaceutical Supply Chain

The proposed partnership aims to simplify the complex pharmaceutical supply chain. Humana CEO Jim Rechtin explained, "We have layered complexity upon complexity upon complexity to the things that we do. What we're attempting to do is step back and say, 'OK, how do you get rid of all that complexity? Simplify this, streamline it, and just do the basics of what's meant to be done here, get a drug from the plant to the consumer, and do it in the most efficient way possible'."

This streamlined approach could potentially save employers "billions and billions of dollars," according to Cuban. By contracting directly with drug manufacturers and eliminating multiple intermediaries, the partnership could offer greater transparency and significantly lower costs.

Challenges to Traditional PBM Models

Both Cuban and Rechtin called for more employers to challenge traditional PBM models. Rechtin stated, "We need more CEOs of large employers to basically say, 'Hey, we're going to demand a different model, one that is transparent, one that bypasses the system that's been in place now for decades'."

Cuban has been vocal in encouraging employers to demand transparency and consider cash payment for prescription drugs, aiming to disrupt the established pharmacy business model. This partnership with Humana's CenterWell could provide a concrete alternative to the status quo, offering employers a more direct and cost-effective way to provide prescription drug benefits to their employees.

As discussions between Cost Plus Drugs and Humana's CenterWell continue, the pharmaceutical industry watches closely. If successful, this partnership could signal a significant shift in how prescription drugs are priced and distributed, potentially leading to lower costs for employers and increased access to affordable medications for consumers.