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  • Ryan Wittler

Mark Cuban’s Generic Drug Pharmacy Could Save Medicare Billions of Dollars Each Year


MCCPDC


A new analysis led by researchers at the Harvard Medical School shows Medicare’s prescription-drug program could save billions of dollars annually by purchasing generic drugs from the Mark Cuban Cost Plus Drug Company (MCCPDC).


Analysis highlights:


The analysis compared the price of 89 generic drugs (treating things ranging from acid-reflux to cancer) sold by the MCCPDC to the price Medicare Part D plans paid in 2020, finding Medicare could have saved $3.6 billion on 77 generic drugs if it purchased the maximum quantity supplied by the MCCPDC.

  • If it purchased the minimum quantity available from the MCCPDC, it could have saved $1.7 billion on 42 drugs.


The potential $3.6 billion Medicare could have saved amounts to around 37% of its total spending on prescription drugs, while the $1.7 billion amounts to 18%.


The MCCPDC:


In January, billionaire entrepreneur and owner of the NBA’s Dallas Mavericks Mark Cuban launched an online pharmacy selling over 100 generic drugs at the cost of ingredients and manufacturing, plus a 15% margin, $3 dispensing fee, and $5 for shipping.

  • The pharmacy sidesteps the traditional distribution models and negotiates directly with drug manufacturers to get better prices.

  • For example, a 30-day supply of the generic cancer drug imatinib costs $14.40 with MCCPDC, while it retails for $2,502 at other pharmacies.


Why it matters:


The researchers say the findings suggest Medicare is overpaying for certain drugs, costing taxpayers billions each year.

  • They also highlight the inefficiencies in the current generic pharmaceutical system and the need for policy reforms to improve transparent pricing and competition for high-cost generic drugs.

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