Why We’re All In on Mark Cuban’s Cost Plus Drugs (And Why You Should Be Too)
Let me be blunt: prescription drug prices in the U.S. are a mess.
You’ve got pharmacy benefit managers (PBMs) playing middleman games, bloated markups on generics, and employees standing at the pharmacy counter wondering why their “insurance” still leaves them paying hundreds of dollars out-of-pocket. It’s broken. And for years, we’ve all just... dealt with it.
But that’s not how we do things at Kennion.
We’re not in the business of “dealing with it.” We’re in the business of fixing it. That’s why we’ve integrated Mark Cuban’s Cost Plus Drugs directly into our Employee Benefits program.
The Problem: Prescription Drug Pricing Is a Shell Game
Let’s look at how this plays out in the real world.
A generic drug that costs $5 to make somehow ends up costing $100 or more by the time it reaches your employee. Why? Because traditional pharmacy benefit managers (PBMs) tack on layers of fees, markups, rebates, and spread pricing. No one knows what anything actually costs. Employers lose. Employees lose. Carriers win.
And that means your health plan costs more—and your team still can't afford their meds.
Here’s a stat that’ll make you want to flip a desk:
A 2024 study from Peterson-KFF found that nearly 3 in 10 adults in the U.S. skip or ration medications due to cost.
(Source: https://www.healthsystemtracker.org/chart-collection/what-are-the-recent-trends-in-prescription-drug-prices-and-spending)
That’s a big deal. Especially if you’re trying to run a business and keep your team healthy and productive.
The Solution: Real Pricing. No Games.
Mark Cuban launched Cost Plus Drugs to eliminate the smoke and mirrors. Their model is simple:
- They show you the actual cost to make the drug.
- Then add a 15% margin, a $3 pharmacy fee, and $5 shipping.
- That’s it.
No rebates. No PBM games. Just transparent pricing.
Here’s a real-world example from our own clients:
- Traditional Plan: Employee pays $134.18 for Aripiprazole (generic Abilify).
- Cost Plus Drugs: Same medication, $11.40 delivered to their door.
It’s not a typo.
What We’re Doing at Kennion
We’re not just telling clients to check it out—we’re building Cost Plus into our health plans.
Every employer group we work with gets a plug-and-play integration with Cost Plus Drugs. Employees can order directly, no insurance card needed. And because the prices are lower than the plan deductible in many cases, the savings flow directly to the employee and employer.
We also educate HR teams and employees on how and when to use it. We even provide cost comparison tools so members can check if it’s cheaper to skip the insurance and just go straight through Cost Plus.
This isn’t a gimmick—it’s a shift. A shift away from the old system where everyone’s getting rich except the patient.
Why This Matters for Your Business
- Lower Costs – For both you and your employees. Generic meds don’t need a middleman markup.
- Better Access – More employees filling their prescriptions = fewer sick days and ER visits.
- More Transparency – You can finally explain to your team why the plan is designed the way it is. And it actually makes sense.
- Stronger Recruiting & Retention – This is the kind of benefit that makes people say, “Wow, that’s different.”
Bottom Line
If you’re still relying on a bloated traditional pharmacy plan, you’re burning money. Your employees are, too. And for what?
There’s a better way—and we’re already doing it.
We’ve baked Cost Plus Drugs into our benefits platform because we believe your team deserves better. No more guessing, no more sticker shock, no more skipping meds because of absurd pricing.
If you’re tired of the same old overpriced, underwhelming pharmacy setup, let’s talk.