Mark Cuban

When you think about your deductible, your co-pay, and your co-insurance, What it is you have to pay up to before the health company kicks in, your co-pay a specific amount to see a doctor, or your co-insurance, like on original Medicare where you have to pay 20% or some percentage of the total.

Do you know who accepts the default risk on all of that? I would assume the patient. No. The hospitals and the doctors take that credit risk. And they literally, yes, it's insane.

Do you know who accepts the default risk on all of that? I would assume the patient. No. The hospitals and the doctors take that credit risk. And they literally, yes, it's insane.

So that's what happens. So we're turning hospitals and doctors into subprime lenders without assets against them.

So that's what happens. So we're turning hospitals and doctors into subprime lenders without assets against them.

I see where you're going. You're a hospital. When I talk to hospitals, a lot of them, they have default rates of 50 to 60% or more, depending on where the hospital is located. So now this hospital, half the deductibles, co-pays and co-insurance that they are supposed to be paid by the patient, they don't collect on it. So a couple of things happen downstream from there.

I see where you're going. You're a hospital. When I talk to hospitals, a lot of them, they have default rates of 50 to 60% or more, depending on where the hospital is located. So now this hospital, half the deductibles, co-pays and co-insurance that they are supposed to be paid by the patient, they don't collect on it. So a couple of things happen downstream from there.

One, they turn into like a mortgage servicer where they try to collect it. You know, and it makes them look bad. They hate being put in that position. Right. But there's no upside. You know, maybe you collect some money, but on the downside, the patients hate you. The whole world hates you because of all the patient debt and medical debt and bankruptcies as a result.

One, they turn into like a mortgage servicer where they try to collect it. You know, and it makes them look bad. They hate being put in that position. Right. But there's no upside. You know, maybe you collect some money, but on the downside, the patients hate you. The whole world hates you because of all the patient debt and medical debt and bankruptcies as a result.

But when you can't collect them, what do you do to compensate for that lack of revenue? You jack up your fucking price. Right.

But when you can't collect them, what do you do to compensate for that lack of revenue? You jack up your fucking price. Right.

But it gets worse. And so now these providers, the hospitals and doctors, they negotiate with the big insurance companies. And it's fascinating if you walk into a hospital to pay for an MRI, as an example, and you don't mention your insurance, you just say, I want a cash price. They'll probably say it's $350 to $450, depending on where you live.

But it gets worse. And so now these providers, the hospitals and doctors, they negotiate with the big insurance companies. And it's fascinating if you walk into a hospital to pay for an MRI, as an example, and you don't mention your insurance, you just say, I want a cash price. They'll probably say it's $350 to $450, depending on where you live.

That same hospital will negotiate with what they call the BUCAs, the big insurance companies, right? For that same thing, they'll negotiate a price of $2,000. What? Yeah. So you would think that big insurance company negotiating with the hospital and that insurance company covers millions of lives.

That same hospital will negotiate with what they call the BUCAs, the big insurance companies, right? For that same thing, they'll negotiate a price of $2,000. What? Yeah. So you would think that big insurance company negotiating with the hospital and that insurance company covers millions of lives.

Because the hospital needs the insurance company as a sales funnel to bring patients in so they can pay their bills. And the insurance company wants that price to be higher, particularly for things like the ACA, because the ACA requires for all the plans they cover that they spend up to 85%.

Because the hospital needs the insurance company as a sales funnel to bring patients in so they can pay their bills. And the insurance company wants that price to be higher, particularly for things like the ACA, because the ACA requires for all the plans they cover that they spend up to 85%.

Well, but it's by law the way the ACA works. So think about this, John. So somebody who gets an individual plan on the ACA, say one of the bronze plans, which is the least effective, right? Right. And it has a $9,000 deductible. So this individual can't afford much in premiums, decides they want a 9,000 deductible. You know who's truly subsidizing that deductible? The fucking hospital.

Well, but it's by law the way the ACA works. So think about this, John. So somebody who gets an individual plan on the ACA, say one of the bronze plans, which is the least effective, right? Right. And it has a $9,000 deductible. So this individual can't afford much in premiums, decides they want a 9,000 deductible. You know who's truly subsidizing that deductible? The fucking hospital.

And when you get your insurance or anybody gets insurance from a big company and they show you five, six, seven different plans, and one of them is a $1,500 deductible, but you're 25, you know, and so you take the $5,000 deductible. Who takes on that risk of the $1,500 versus the 5,000? The doctors in the hospitals.