Live data from Hacker News

Mark Cuban's pharmacy started with a cold email

beckershospitalreview.com

81–90 of 221 posts

Re: Mark Cuban's pharmacy started with a cold email

#81

Earlier quoted context omitted.

In America, it is a charity effectively to provide what is essentially a public service by “only” taking a 15% cut on generics when other manufacturers are selling at magnitudes higher costs. It’s Costco for generic meds. No one calls Costco a charity, but their employees and customers love them for being fair and their business is held up as an example of how to create value from customer loyalty. And they still gen…

Costco already is Costco for generic meds! What I've heard ( not researched) is that they typically have the lowest drug prices.

They are cheaper than Costco on several drugs based on a comparison performed within the last 20 days.

Re: Mark Cuban's pharmacy started with a cold email

#82

Either I don't understand the phrase "Vertical integration" or Mark Cuban doesn't. Cuban says "We basically created a vertically integrated manufacturing company." But, they don't do manufacturing, because later Cuban says "The manufacturers love what we're doing for that reason". They also apparently don't do the pharmacy aspect because Cuban says his company "charges a $3 pharmacy fee to pay the pharmacists it work…

it seems manufacturing is on the todo list.

https://khn.org/morning-breakout/mark-cuban-unveils-plan-to-...

Re: Mark Cuban's pharmacy started with a cold email

#83

Either I don't understand the phrase "Vertical integration" or Mark Cuban doesn't. Cuban says "We basically created a vertically integrated manufacturing company." But, they don't do manufacturing, because later Cuban says "The manufacturers love what we're doing for that reason". They also apparently don't do the pharmacy aspect because Cuban says his company "charges a $3 pharmacy fee to pay the pharmacists it work…

They plan to both manufacture and resell.

>15% markup plus pharmacy fee plus shipping and handling.

This is the intent, and still cuts out at least 2 middle men between consumers and manufacturers: the insurance company and pharmacy benefit managers.

Re: Mark Cuban's pharmacy started with a cold email

#85

Earlier quoted context omitted.

> Mark Cuban's pharmacy, however, refuses to deal with your insurance I don't see a problem with this. Some insurance plans are can be hard to deal with. My personal experiences involve requiring step therapy (trying a cheaper, possibly less effective drug) before approving the prescription. Another experience is that a drug may only be covered for one condition but not for another (e.g. finasteride for hair loss vs…

> My personal experiences involve requiring step therapy (trying a cheaper, possibly less effective drug) before approving the prescription. FYI, Mark Cuban's pharmacy only deals in generic medications. Most of the "step therapy" programs exist to gate the non-generic medications, so you wouldn't be finding them at Mark Cuban's pharmacy anyway. Also, you don't need insurance to use a traditional pharmacy. You should…

> Most of the "step therapy" programs exist to gate the non-generic medications, so you wouldn't be finding them at Mark Cuban's pharmacy anyway.

I had to go through PA for 2 generic drugs that cost ~10-15 each a month from Costco (according to GoodRX). Cost Plus is actually a bit more expensive with shipping. If its $5 shipping total and not per drug its a small saving but wouldn't count towards my deductible. Was a huge hassle. I'm pretty sure if you were to take the time*wage my pharmacist, my doctor and myself spent on getting it done it would have paid for the prescriptions for at least a decade.

Oh and I'm on a high deductible plan so it will probably never cost them anything because I probably won't hit my coinsurance/out of pocket max.

Re: Mark Cuban's pharmacy started with a cold email

#86

Either I don't understand the phrase "Vertical integration" or Mark Cuban doesn't. Cuban says "We basically created a vertically integrated manufacturing company." But, they don't do manufacturing, because later Cuban says "The manufacturers love what we're doing for that reason". They also apparently don't do the pharmacy aspect because Cuban says his company "charges a $3 pharmacy fee to pay the pharmacists it work…

They plan to both manufacture and resell. >15% markup plus pharmacy fee plus shipping and handling. This is the intent, and still cuts out at least 2 middle men between consumers and manufacturers: the insurance company and pharmacy benefit managers.

There were already many companies doing this.

Re: Mark Cuban's pharmacy started with a cold email

#87
post #74

On one hand, we should obviously applaud anyone doing anything to bring down drug prices. On the other hand, I'm increasingly uncomfortable with just how much free marketing and PR is being applied to the "Mark Cuban Pharmacy" without much critical examination of what's going on here. Taking one of the examples straight from their homepage: They will sell you 30 Prozac tablets for $3.90: https://costplusdrugs.com/med…

>I'm concerned that Mark Cuban is capitalizing on people's lack of understanding about how insurance works and how easy it can be to look up drug prices (use your insurance company's website or just pick up the phone and call your pharmacy, they'll check for you) That certainly hasn't been my experience. Most pharmacies I've tried this with need to actually 'fill' the script and run it through insurance to get a fina…

> The sad thing is, all these pharmacies know about GoodRx and other discount providers. They could stop playing games and just run all scripts through these providers to get a 'cash price', but they don't.

They aren’t allowed to contractually. The PBMs and insurance companies make pharmacies sign contracts that forbid them from doing this. They also forbid pharmacies from telling customers if it would be cheaper to pay cash.

Most states have only a few major insurance companies and getting caught and losing the ability to serve a large portion of clients would put most pharmacies out of business.

Re: Mark Cuban's pharmacy started with a cold email

#88

On one hand, we should obviously applaud anyone doing anything to bring down drug prices. On the other hand, I'm increasingly uncomfortable with just how much free marketing and PR is being applied to the "Mark Cuban Pharmacy" without much critical examination of what's going on here. Taking one of the examples straight from their homepage: They will sell you 30 Prozac tablets for $3.90: https://costplusdrugs.com/med…

You should read the submarine [0], a great article on why this happens that I found here on HN.

TL;DR: writing news is hard and journalists are overworked and underpaid. Media firms for companies basically write these articles for journalists, and since they aren't technically false everybody wins (except the reader) because the news agency gets a lot of "news" and the companies get exactly the spin they want.

[0]: http://www.paulgraham.com/submarine.html

Re: Mark Cuban's pharmacy started with a cold email

#89
The prices for these drugs is ridiculous. My kids vere prescribed Ventolin this winter due smog related illnesses. Looking at price of a Ventolin inhaler (90mcg) even on Cuban's website (https://costplusdrugs.com/medications/albuterol-90mcg-inhale...) it costs $43

The same thing costs less than $2 in Pakistan for the Glaxo Smith Kline version. https://www.emeds.pk/ventolin

Re: Mark Cuban's pharmacy started with a cold email

#90
post #60

This is just a rant. I want Amazon, Facebook, Google, Apple, Walmart, all the so called evil multinational corps, billionaires like Cuban, Gates, Musk, Zuckerberg & Co. and the the government to get into American healthcare industry and dismantle the multi trillion dollars racket, change it into something functional and useful for the people. I don't care if it will mean millions of people in the insurance, hospital…

> I don't care if it will mean millions of people in the insurance, hospital administration, public and private health policies will be out of jobs. Sorry I don't.

As someone who works in this industry, though for a non-profit medical practice group, we want it gone as much as the patients. It's an absolute nightmare to do anything. We have a staff of twenty people just to deal with the paperwork side of the business, and that doesn't include answering phone calls from patients. All of those people could be put to far more productive use doing anything else; half of them are people who wanted to get into medicine but not through a full-fledged medical degree and are now toiling away shuffling forms. We would love to move them to patient care assistants or anything else but we have to have them in order to get paid.

(I know for sure we would like to have them do other things and they would like to do this because our group has a role rotation program where people can rotate in and out of groups to try other things. The insurance/paperwork group has virtually no one want to rotate in and almost the entire group is on the list to rotate out for a month or two a year to do something different.)

> Also for doctors, medical schools, state medical license issuing bodies, you are gonna allow minimum 10x increase in new doctors entering your field.

I also completely agree with this. It's frustrating to deal with the regulatory issues, too. We had to move a practice office (that is, where patient care is provided) from a place we leased to an office we bought as part of a commercial condominium a few years ago. Getting that approved took months of back and forth because the rules of the licensing body didn't fully contemplate an "office condominium" like we purchased.

Post reply on HN