Potential Medicare and Medicaid Savings for Hair and Skin Drugs by Adopting the Mark Cuban Cost Plus Drug Company Model

Introduction: The United States grapples with a persistent challenge of escalating national healthcare expenditure, projected to rise by five percent in 2024 and nearly six percent for 2025-2031. Amidst concerns about the growing healthcare costs, especially prescription drugs, this study explores the potential cost-saving impact of the Mark Cuban Cost Plus Drugs Company (MCCPDC), an innovative online pharmacy. Focusing on dermatological drugs, crucial for conditions affecting millions, the study aims to assess MCCPDC's pricing model against established programs like Medicare and Medicaid.

Methods: The study adopts a cross-sectional analysis, adhering to Consolidation Health Economic Evaluation Reporting Standards (CHEERS). The comparison involves 29 hair and skin drugs available on the MCCPDC website with 2021 Medicare Part D and Medicaid spending data. The analysis considers potential savings by adopting MCCPDC prices and employs unit prices, dispensing fees, and shipping costs for comparison.

Results: The study reveals substantial potential savings, estimating $214.7 million for Medicare and $49.7 million for Medicaid if MCCPDC prices were adopted. Individual drug analysis highlights significant reductions, with Fluticasone Propionate demonstrating the highest potential savings.

Discussion: MCCPDC's pricing strategy could revolutionize dermatology, offering substantial cost reductions and improved accessibility. The study emphasizes its potential impact on patient adherence, particularly for conditions like atopic dermatitis, and extends the benefits to preventative medicine, lowering long-term healthcare costs. While challenging traditional pharmaceutical profit margins, MCCPDC incentivizes cost-efficient drug development, promoting sustainability and efficiency in the industry.