Mark Cuban Cost Plus Drugs Provides More Cost Savings for Dermatology Prescription - Drug Topics

Mark Cuban Cost Plus Drugs Provides More Cost Savings for Dermatology Prescription – Drug Topics

2025-04-22T15:54:31Z

Researchers conducted an observational cost analysis of dermatology drug savings between GoodRx and Mark Cuban Cost Plus Drug Company.

Mark Cuban Cost Plus Drug Company (CostPlus) demonstrated significantly higher savings for dermatology drugs when compared with GoodRx, according to a study published in JMIR Dermatology.1 While both companies’ models provided patients with savings, CostPlus was much more successful, demonstrating better savings even when compared to GoodRx’s lowest-priced products.

“In 2022, entrepreneur Mark Cuban launched the Mark Cuban Cost Plus Drug Company (CostPlus)—a public benefit corporation with a vertically integrated supply chain—to address rising pharmaceutical costs,” wrote the authors of the study. “CostPlus offers medications for a 15% markup and a $5 pharmacy fee, allowing for significant cost savings. Studies have found that pharmacy coupon websites can lead to significant savings for patients within dermatology, with GoodRx providing some of the highest rates of saving.”

CostPlus was founded in 2022 by entrepreneur Mark Cuban to address one of the greatest needs in the prescription drug market. | image credit: zhenya / stock.adobe.com

The cost-plus business model is a disruptive new benefits company changing the way prescription drugs are distributed. Born out of a national need to make prescription drugs affordable, the business model attempted to steer clear of pharmaceutical middlemen and directly bring patients their medication needs.

READ MORE: How LucyRx is Changing the Traditional PBM Model

Although GoodRx is also trying to change the mold in the pharmacy benefits arena, Mark Cuban’s CostPlus’ business model favors patients more than pharmacy benefit managers (PBMs).

“Unlike GoodRx, which negotiates with PBMs to offer coupons that lower the price consumers pay for prescription medications, Cost Plus Drugs lowers medication costs by cutting out PBMs entirely,” wrote Rachel Stubler for the Medical University of South Carolina.2 “Cost Plus Drugs negotiates directly with drug manufacturers to purchase generic medications at low list prices.”

With an advertised 15% markup and $5 fee, Cuban’s company provides much-needed transparency within prescription drug benefits. However, as these business models are still quite novel—both companies were founded after 20103—researchers are still trying to understand how these new ways of administering medications are a viable option for patients in the future.

In the current study, researchers conducted an observational cost analysis of the cost savings presented by CostPlus and GoodRx regarding the most prescribed medications for dermatology. They retrieved drug prices from each company’s mobile app or website on November 26, 2023. GoodRx retail prices were averaged and only included data from New York, Los Angeles, and Chicago—the largest US metropolitan statistical areas. They also considered shipping and fees for both companies’ drugs.1

CostPlus drug prices were significantly less expensive across the board.

“The average medication cost, excluding shipping, was $17 through CostPlus and $31.21 through GoodRx,” they continued.1 “The average medication cost using the cheapest price available from GoodRx was $21.34, which remained significantly different from CostPlus. When a $2.60 shipping fee per medication was included, the average cost increased to $19.60, remaining significantly different from the average GoodRx cost.”

As it’s commonly disseminated in the media, CostPlus was shown to provide significantly more savings than its PBM-affiliated competition at GoodRx. With GoodRx’s positioning to work closely with PBMs, they are often seen as filling the pockets of corporations while making medication access harder for patients.

In November of last year, GoodRx and multiple market-leading PBMs were hit with 3 class action suits for the coupon company’s role working with PBMs to suppress reimbursement to small pharmacies.4 The attention Mark Cuban’s company is getting, on the other hand, has been celebrated by patients and pharmacists alike—entities on the drug supply chain that experts would argue have gotten the worst of the pharmacy benefits system in the US.

“If you look at the history of the supply chain,” said Cuban at a University of Pennsylvania discussion on drug pricing.5 “There are people who have come up with really good ideas that have had an impact, but then somebody comes in to buy them up and kill them. Well, you know what? I don’t need any more money. I’m rich as hell. So, I don’t need to do this for more money. My joy comes from screwing the PBMs. Every one of these sales that we close [directly with the drug] manufacturers is like a great day with the sun shining brightly for me.”

The current study significantly highlights the CostPlus company’s ability to reduce dermatology drug costs. However, as both companies, as well as PBMs, get more and more attention from places like the media and US Congress, researchers will gather more evidence to understand what the most viable model for prescription drug distribution should be in the US.

“CostPlus is a viable tool to reduce prescription medication burden within dermatology and especially among uninsured individuals or those with high-deductible health plans,” concluded the authors of the study.1 “CostPlus may offer patients and clinicians more convenience in addition to greater cost savings.”