What did Mark Cuban say about healthcare stocks?

Mark Cuban challenged the ethics of investing in healthcare companies that profit by making care more expensive and patients sicker through claim denials. He questions if this makes one a 'great investor'.

What are some ways small businesses can manage their health insurance costs?

Small businesses can review their SHOP eligibility for tax credits, check SBA resources, inquire about Level-Funded plans, and consider Direct Primary Care (DPC) models.

Why do healthcare stocks rising often lead to higher costs for small businesses?

Higher stock expectations pressure insurers to raise premiums to meet earning goals, and business models that profit from claim denials increase administrative burdens and overall costs for small businesses.

🚀 Starting a Business

Cuban Slams Healthcare Stocks: The Cost of Your 2025 Team

Mark Cuban just challenged the ethics of healthcare investing. Here is why his stance matters for your small business insurance costs.

By MyBizNerd Team · Published October 1, 2026

Key Takeaways

Healthcare costs for small businesses rose by 7% in the last year, significantly outpacing general inflation and eating into payroll budgets.
Investing in companies that profit from claim denials creates a cycle of rising premiums for your 5 to 25-person team.
The SBA (Small Business Administration) provides resources for small operators to find alternative coverage options that bypass traditional corporate insurers.

Small business owners paid an average of $8,435 for single coverage and $23,969 for family coverage in 2023, according to KFF (Kaiser Family Foundation) data. This isn't just a budget line item. It's a growing barrier to hiring the next person you need.

The Cost of the Investor Paradox

Mark Cuban said on X roughly five days ago: "If you buy stock in Healthcare companies you know are making care more expensive and patients sicker via denials, are you a great investor?" This comment hits the nerve of why your monthly premiums keep climbing. When a major insurer reports record earnings, it often comes from two places: charging your business more or paying out less for your employees' care. For a plumbing company with ten trucks on the road, a 10% premium hike isn't just a nuisance. It's $15,000 to $20,000 a year that could have been a new hire's salary or a down payment on a new van. Cuban is pointing out that the profit model for many large healthcare stocks relies on the friction between you and your provider. If the stock price goes up because the company got better at saying no to claims, the small business owner is the one left holding the bill.

Why Healthcare Stocks Hit Your * Higher stock expectations force insurers to raise premiums to meet quarterly earnings goals.

Denial-heavy models increase your admin time as you or your office manager fight for employee coverage.
Rising costs force you to choose between offering benefits and staying profitable.

Managing Your 2025 Benefits Budget

Review your Small Business Health Options Program (SHOP) eligibility at Healthcare.gov to see if you qualify for tax credits.
Check the SBA (Small Business Administration) for specific federal tax information regarding employer-provided health insurance.
Ask your broker about Level-Funded plans, which can save money if your team is relatively healthy.
Consider Direct Primary Care (DPC) models that remove the middleman insurer for routine visits.

If your insurance agent only shows you the big three carriers, they're likely participating in the very system Cuban is calling out.

You cannot fix the national healthcare market. But you can stop subsidizing the profit margins of companies that make it harder for you to operate. Start by auditing your current plan six months before renewal. Waiting until the last minute ensures you stay trapped in the high-cost cycle that fuels those investor returns.

📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.

Frequently asked questions

What did Mark Cuban say about healthcare stocks?: Mark Cuban challenged the ethics of investing in healthcare companies that profit by making care more expensive and patients sicker through claim denials. He questions if this makes one a 'great investor'.
How much are small businesses paying for employee health insurance?: In 2023, small businesses paid an average of $8,435 for single coverage and $23,969 for family coverage, according to KFF data.
What are some ways small businesses can manage their health insurance costs?: Small businesses can review their SHOP eligibility for tax credits, check SBA resources, inquire about Level-Funded plans, and consider Direct Primary Care (DPC) models.
Why do healthcare stocks rising often lead to higher costs for small businesses?: Higher stock expectations pressure insurers to raise premiums to meet earning goals, and business models that profit from claim denials increase administrative burdens and overall costs for small businesses.