Mark Cuban Says People Are Getting ‘Ripped Off’ by Health Insurers — And New Technology Can Reveal Where They Can Save Money

Billionaire entrepreneur Mark Cuban says that employers looking to minimize healthcare costs should move first to an AI chatbot. 

The celebrated former Shark Tank investor said connected an section of the Digital Health Heavyweights podcast that aired earlier this week. He asserted that AI chatbots for illustration ChatGPT, Claude and Gemini tin quickly look done analyzable healthcare contracts and pinpoint wherever companies are astir vulnerable. In different words, ChatGPT tin thief employers prevention money by identifying wherever they are overpaying for healthcare. 

“Run them all. Every healthcare statement you person tally done Claude aliases whatever, and conscionable say, ‘Where americium I getting ripped off?'” Cuban said.

AI chatbots person a greater attraction span than quality beings, according to Cuban. They are capable to parse done the position of a statement and thief employers understand what they are paying for. 

“Our eyes rotation backmost successful our heads whenever we effort to get into the minutiae and the mini people of each these 100-page contracts aliases more,” Cuban said. However, he cautioned that “every azygous definition, each azygous connection successful your contract” functions “to return advantage of you.”

Cuban is taking connected the healthcare manufacture pinch his startup, Mark Cuban Cost Plus Drug Company, an online drugstore focused connected generic medications. Launched successful 2022, it now offers thousands of generic drugs. 

Cuban suggests going consecutive to hospitals

Tapping into AI to understand healthcare contracts is only the beginning, Cuban said connected the podcast. He added that employers person to contend pinch the financial risks they are agreeing to, alternatively than going successful blindly and assuming that insurers person their champion interests astatine heart. 

“People default to security arsenic if the security company’s going to springiness them thing much than what they put in,” Cuban said. “That’s ne'er the case.”

Cuban suggested that companies pinch the basal financial backing should see signing contracts straight pinch hospitals, clinics aliases expert groups alternatively of conscionable leaning connected accepted insurers. The advantage location would beryllium negotiating little prices straight pinch hospitals.

Cuban’s critique of wellness security companies

Cuban has taken a critical stance against wellness security companies, arguing that they thief move healthcare into a strategy that overcharges patients, employers and taxpayers. 

In an X post successful January, Cuban wrote, “Explain to maine why the security institution will salary $2500 for an MRI erstwhile location is simply a halfway down the thoroughfare that will do it for $350?” Cuban says this shows really contracts and pricing structures, not aesculapian needs, power the last measure for a aesculapian procedure. 

In different X post successful January, Cuban described healthcare arsenic a “game of who tin rip disconnected who and get distant pinch it.” He said that the logic why healthcare costs are “insane” is that hospitals will not only complaint “random costs” but besides summation the wide measure to the security institution if they judge the institution is consenting to salary more. 

Additionally, “even though wellness security costs are the second-largest statement point aft payroll, CEOs don’t really understand it aliases cognize thing astir it,” Cuban said successful an interview pinch Fortune successful March 2024. 

Billionaire entrepreneur Mark Cuban says that employers looking to minimize healthcare costs should move first to an AI chatbot. 

The celebrated former Shark Tank investor said connected an section of the Digital Health Heavyweights podcast that aired earlier this week. He asserted that AI chatbots for illustration ChatGPT, Claude and Gemini tin quickly look done analyzable healthcare contracts and pinpoint wherever companies are astir vulnerable. In different words, ChatGPT tin thief employers prevention money by identifying wherever they are overpaying for healthcare. 

“Run them all. Every healthcare statement you person tally done Claude aliases whatever, and conscionable say, ‘Where americium I getting ripped off?'” Cuban said.