Mark Cuban tells Americans: The real ‘job killer’ is rising healthcare costs, not AI

American entrepreneur Mark Cuban has cautioned that rising healthcare costs, rather than artificial intelligence, may pose a greater threat to job security in the United States. The billionaire and Shark Tank judge made these remarks in a post on social media platform X, formerly known as Twitter, where he stated, "I hope people realize that for the foreseeable future, the cost of healthcare benefits will get more people fired, or not hired, than AI."

Cuban's comments come as fears surrounding AI-driven job losses continue to dominate workplace discussions. However, he argued that mounting healthcare expenses are placing a heavier burden on employers, leading businesses to reconsider hiring plans and workforce costs.

According to a report by Fortune, the United States spends more on healthcare than any other country, with spending reaching $5.3 trillion in 2024, accounting for about 18% of GDP. This represents more than double the $2.5 trillion spent in 2000. Per-person spending in the U.S. was $14,775 in 2024, nearly double the $7,860 spent by residents of other high-income nations.

Employers are grappling with the rising healthcare costs. A Mercer survey of over 1,800 employers found that health care costs have increased every year for the past five years. Mercer projects that the cost per employee could rise by 8.2% in 2027, the largest increase since 2003. Nearly half of large U.S. employers, defined as those with 500 or more employees, anticipate altering their medical plans in the coming year, primarily due to higher deductibles and copays that increase workers' out-of-pocket expenses.

Cuban's claim is supported by academic research. A 2024 paper from Yale's Tobin Center for Economic Policy found that a 1% rise in healthcare prices leads to a roughly 0.4% decrease in payroll and employment at non-health sector employers. The paper suggests that rather than reducing wages, employers respond to increases in insurance premiums by cutting the number of workers they employ.

The research on healthcare costs and employment does not directly compare this effect to the impact of AI. Fortune did not cite research on this point. The rising costs of healthcare in the U.S. can be attributed to factors such as higher labor costs, new technology, pricier treatments like GLP-1 medications, and structural issues within the U.S. healthcare system, including hospital consolidation and rising administrative costs.