Cuban Calls on Investors to Divest from Health Insurers Over Rising Costs

Mark Cuban has called on investors to pressure major US health insurers to address rising healthcare costs. The billionaire entrepreneur argued that shareholders in companies like UnitedHealth Group (NYSE:UNH) are 'part of the cost of healthcare problem'. He claimed that these companies prioritize share prices over patient care and mislead people to increase profits.

Cuban urged investors to use their ownership to pressure the industry, as 61% of Americans own stocks directly or indirectly. This includes funds that hold shares in major insurance carriers like UnitedHealth. Cuban suggested that investors consider divesting their positions unless insurers change their practices.

The debate centers on vertical integration, with companies operating businesses across insurance, pharmacy services, and other parts of healthcare. Cuban co-sponsored the bipartisan Patients Before Monopolies Act, which would prohibit common ownership of insurers and pharmacies and require affected companies to divest those holdings within a year.