Mark Cuban says your 401(k) is ‘part of the cost of health care problem.’ Do you dump Big Insurance and own your values?

Billionaire entrepreneur Mark Cuban has criticized the impact of large health insurance companies on the cost of healthcare in America. Cuban argues that if you own shares in publicly traded insurance companies, you are contributing to the healthcare cost problem in the country. He urges investors to divest from these insurance giants and demand that their funds sell their insurance holdings.

Cuban emphasizes that insurance companies prioritize profits over patient care, often leading to delayed care, underpayment, and denied claims. He points out that these practices not only inflate healthcare costs but also leave patients waiting for crucial treatments. In 2022, the Department of Health and Human Services found that 13% of denials from 15 of the largest Medicare Advantage insurers met Medicare's coverage rules.

Additionally, the Federal Trade Commission revealed that insurance companies like CVS Health, Cigna, and UnitedHealth Group generated over $7.3 billion in revenue above estimated drug acquisition costs between 2017 and 2022. Despite these issues, Cuban acknowledges that 61% of Americans own stocks, either directly or indirectly.

However, he cautions that selling a broad index fund may expose investors to fewer stocks or sectors, increasing their portfolio's dependence on a smaller group of investments. He suggests considering alternative options like precious metals, such as gold, which can act as a hedge and reduce exposure to publicly traded companies.