Jun 11, 2026
Tired of paying monthly health care premiums that you never see again? Billionaire Mark Cuban has an idea that would let Americans keep the money they would otherwise pay for insurance if they don’t need it.
Cuban has never been shy about calling out what he sees as broken systems. His latest target: the American health insurance market, which he argues functions more like an endless subscription than actual financial protection.
Advertisement
“The one debt you can’t ever pay off? Your insurance premiums,” the founder of Cost Plus Drugs, the low-cost prescription drug company, recently posted about the idea on X. “You literally will pay an insurance premium monthly, till you die.”
In a 2025 blog post, Cuban said that hypothetically healthcare should look like it’s 1955. “Patients go to providers for care. Providers provide that care. Patients get a bill and if they can afford it, they pay that bill. That’s it.” he wrote, noting he chose 1955 because of the film “Back to the Future.”
His proposed fix to the health insurance system is something between a bank account and a benefits plan.
“What if there was a bank account available that required you to deposit monthly, what you would have paid an insurance company in premiums for an ACA silver plan. So, for a family of 5, about $2100. Like an HSA, it could only be used for approved medical expenses. If you never have any medical expenses, you will get to keep the money plus checking [account] level interest when you turn 65” Cuban wrote.
How would Cuban’s idea work, and what would it mean for you?
Cuban’s proposed plan is pretty simple: Instead of paying premiums to an insurance company, a family would deposit a similar amount — roughly $2,100 a month for a family of five on an ACA silver plan— into a specialized account.
Here’s where the money goes from there:
Advertisement
- $300 would go toward stop-loss insurance, which kicks in if medical expenses exceed $30,000.
- Another $200 would cover a direct primary care membership, giving the family access to a local doctor for routine visits and care.
- The remaining $1,600 would sit in the account — it would earn interest and be available only for approved medical expenses.
If you go years without a major health event, that money builds up. Cuban says if you never spend it, you’d get to keep the balance plus interest when you turn 65. And if a medical emergency hits before you’ve saved enough? Your bank would loan you up to $30,000, the stop-loss threshold, which you’d repay through future monthly deposits.
“This is not insurance,” Cuban wrote. “It’s a specially designed bank account that gives you control, support, a doctor to work with, and catastrophic financial protection.”
The concept is similar to a health savings account (HSA), though Cuban’s version adds the catastrophic loan feature and a structured monthly deposit requirement. He does acknowledge in his post that there are plenty of logistical and regulatory hurdles still to work out.
But Cuban said a plan like his, with more transparency and a heavy reliance on a direct-payment model, could lead to overall savings of around $2.5 trillion.
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
3 ways to plan for medical costs in the future
Cuban’s idea is interesting, but it’s still just an idea, not a proposed plan. However, if anyone can make it happen, Cuban is probably the person to do so. Still, what options do you have today to keep costs under control today? Here are a few practical tips:
Max out an HSA if you’re eligible
A health savings account is the closest real-world equivalent to Cuban’s plan, and it comes with a triple tax advantage: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. For 2026, the IRS limits contributions to $4,400 for individuals and $8,750 for families. Unlike a flexible spending account (FSA), unused HSA funds roll over, making it a savings vehicle as well as an emergency medical fund. The catch: you must be enrolled in a high-deductible health plan (HDHP) to qualify.
Consider adding catastrophic or hospital-only coverage
Many employers offer additional plans that cover hospital indemnity or catastrophic coverage plans. These typically pay a flat benefit if you’re hospitalized or face a major procedure—not unlike the stop-loss layer in Cuban’s concept. Paired with an HSA or a solid emergency fund, this kind of coverage can help protect your savings or prevent you from falling into medical debt if the worst happens.
Build a dedicated medical emergency fund
A single, 65-year-old retiring today should expect to spend $172,500 on health care in retirement, according to Fidelity. If you start setting aside funds now, you can have the peace of mind that you’ll be able to cover medical expenses in the future. Start small if you need to. Even $50 to $100 a month builds a meaningful buffer over time—and unlike the premiums Cuban is talking about, this money stays yours.
Cuban’s idea may never come to fruition, but the problem he’s pointing to is real: Americans spend enormous sums on health care coverage and often have little to show for the years when they are healthy. Taking a more intentional approach — and saving funds for the future — can help protect your finances.
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
