An estimated 18 million Americans – 7% of the country’s adults – can’t afford the medicine they need. And 1 in 10 admitted to skipping prescribed doses to make their medicine last longer. These statistics from mid-2021 aren’t improving. They paint a shocking portrait of the pharmaceutical situation.
Unsurprisingly then, reducing medical costs is one of the hottest topics in the country. When President Biden came to power, reducing health insurance and drug costs were the top two priorities citizens had for him.
Though not a politician, Mark Cuban’s new drug company is aiming to achieve the latter of those goals.
A Drug Company for the Overpricing Problem
The medication company was founded in 2018 to address the issue of overpriced medication.
He has stated his goal is to make a profit with “maximum impact,” helping people afford what they need. The company aims to be the lowest cost provider of medication in the country.
This isn’t the first organization to do so. Other non-profits exist for similar reasons. How are they managing to slash infamously extortionate prices?
The Startup’s Strategy
Called Cost Plus Drugs, Mark Cuban’s startup company, saves consumers money by cutting out the middle man. In this case, pharmacy benefit managers. These players jack up prices by hundreds if not thousands of percent.
Instead, Cost Plus will buy the drugs directly from manufacturers or make them themselves. A 22,000-square-foot factory in Dallas is being constructed for this purpose. It is expected to be operational by the end of the year and bring 80 jobs to the area.
How Much Can People Save?
How much could a consumer save by buying through Cost Plus? Several examples are shared on its website, the most outstanding of which is Imatinib.
Imatinib is the generic name for the branded drug Gleevec. 30 pills would usually cost a patient around $2,500. Through Cost Plus, the same 30 pills cost about $17.
Who Will Benefit?
The online pharmacy currently only sells 100 products. The company has promised to increase this tenfold by the end of the year, but that still won’t cover every medication.
It also only sells generic medication as opposed to named brand drugs. And any new medication is usually sold exclusively by the named brand for the first 20 years of its release.
However, 90% of dispensed medication in the US is generic. So many millions will be able to benefit from this service.
Can Your Company Save Money?
Cost Plus may shake up the pharmaceutical scene, but the cost of healthcare is still rising. At D2E Health Plans, we help businesses find the most affordable health plan solutions available. So rather than you having to stay up to date on drug company advancements like these, we do it for you.
When you partner with us, you can be sure that your employees will receive the best value benefits out there. Reach out to us today to discuss what your business needs. See how much we can save you!