Mark Cuban Says Medicaid Should Be Simplified: 3 Ways His Plan Would Affect Your Premiums

Brad Barket / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

The latest in budget cuts could see Medicaid losing at least $715 billion in federal funding. If the bill proposing these budget cuts — the One Big Beautiful Bill Act — passes, an estimated 13.7 million people could lose Medicaid coverage. The bill also proposes cutting the federal matching rate for the ACA Medicaid Expansion across 14 states and Washington, D.C., which could further lead to people becoming uninsured.

In response to reports of Medicaid getting funding cuts, Mark Cuban has recently remarked on the need to simplify Medicaid.

“Talking about cuts and Medicaid is political suicide. What this really needs to be about is Medicaid Process Simpli[fi]cation,” he wrote on X. “Let’s do what needs to be done across all of healthcare. Simplify it. Remove the arbitrage. Start with the patient, rather from the budget and work down.”

If Medicaid were to change in the ways Mark Cuban advocates, here’s how it might affect your premiums.

Simplify Medicaid

Cuban’s idea of removing the arbitrage and simplifying Medicaid could have a positive effect on the overall cost of medical care and lower premiums.

“The current system often prioritizes administrative compliance and cost containment over actual outcomes for patients,” said Nate Favini, MD, MS, chief medical officer at Pair Team. “By starting with the patient — understanding their goals, challenges and care needs — we can design systems that are not only more humane but also more cost-effective in the long run.”

According to the CMS, national healthcare expenditure (NHE) increased by 7.5% in 2023. The average person spent $14,570 on health insurance that year, including Medicaid and Medicare. Medicaid alone accounts for about 18% of the total NHE.

Reprioritize To Ensure People Get Proper Care

Cuban suggested starting with the patient — not the budget — and working down from there. This calls for a realignment of priorities where the people come first. Part of this could mean more affordable healthcare — and thus lower premiums.

But this alone might not be enough for individuals to feel the financial benefits.

“Simplifying how Medicaid is administered by removing arbitrage is indeed a smart and necessary first step,” said Alex Veloz, health economist at HEOR Pro. “However, to truly improve Medicaid we have to go further.”

Among other things, Veloz said it’s important to ensure people have coverage year-round. Improving the system as a whole would also require paying medical personnel and facilities based on results — patients’ health improving — instead of how many visits or tests are bills.

Delivering More Effective Care

“There is no silver bullet, but there are ways to make improvements and save money,” Mark Cuban wrote on X.

That said, getting rid of the arbitrage could have a positive ripple effect on patients and their budgets.

“Removing layers of bureaucracy is like clearing a path. It makes it easier to build a better system, but the real opportunity lies in rethinking how we deliver care, support communities and put patients at the center of every decision,” said Veloz. “To that, removing arbitrage could help transform Medicaid from a compliance-focused, cost-managed system into a platform for delivering effective care.”

When people receive the care they need, they’re less likely to need follow-up treatment or care. This can also cut down on costs beyond premiums, like out-of-network or emergency care.

Other Ways To Improve Medicaid

Beyond Mark Cuban’s comments, Favini proposed several other ways to potentially improve Medicaid. Some of these may simplify the program, while potentially cutting costs for the patient. These include:

• Investing in upstream care coordination: “Programs that help people manage chronic conditions, secure housing or access food benefits prevent expensive downstream crises like ER visits or hospitalizations,” Favini said.
• Streamline with tech: Finding the right provider or facility can be confusing, which can also keep people from finding the right care. Using AI-powered tools or systems could simplify healthcare.
• Support with community-based organizations: Local organizations exist to help people receive the care they need, but they need funding, too. According to Favini, bolstering these groups can help them “deliver services that address root causes of poor health.”
• Focus on outcomes, not volume: It’s one thing to experiment with value-based payment models and an entirely different thing to integrate social care. Providers should be paid for keeping people healthy as this will give a greater incentive to coordinate effective care.

“Ultimately, reforming Medicaid isn’t just about cutting costs — it’s about spending smarter,” said Favini. “And that starts, as Cuban suggests, by focusing on what patients actually need.”

Share This Article: