Mark Cuban Says This Debt Is The 'Greatest Trick the Devil Ever Played'

If you're trying to keep more cash in your wallet, you probably track the obvious stuff, like your mortgage, car payment, and maybe even lingering student loans. But billionaire entrepreneur Mark Cuban argues there's a major expense most people don't treat with the same scrutiny: insurance premiums.

Speaking at the American Medical Association National Advocacy Conference, Cuban called premiums "the greatest trick the devil ever played." His point is simple but uncomfortable: we don't think of premiums as debt, even though they behave a lot like it. And that mindset might be one of the most overlooked, surprising financial mistakes people make today.

Why Cuban calls insurance premiums "hidden debt"

Cuban's argument hinges on how we mentally categorize money.

Most forms of debt come with a clear endpoint. You make payments, reduce a balance, and eventually you're done. Insurance premiums don't work that way. You pay every month or every year, but nothing gets "paid off."

As Cuban put it, if you want to keep coverage, you'll keep paying premiums for life. That makes them feel less like debt, but financially, they're still an ongoing obligation that never disappears.

The key difference: no finish line

Think about how other financial commitments work. Mortgages shrink over time. A car loan eventually hits zero, and even student loans have payoff plans eventually. However, insurance premiums reset every billing cycle.

There's no equity, no principal reduction, and no moment where the obligation ends. You're essentially paying to maintain access, not own anything. That's what makes this debt so easy to ignore, even though it may be one of the highest recurring costs in your budget.

The numbers show why this matters

Data from the Kaiser Family Foundation highlights just how big this expense has become. In 2025, the average employer-sponsored family coverage reached $26,993 annually, and workers paid about $6,850 out of pocket.

Those costs have climbed faster than wages for years. And unlike other major expenses, these payments don't build toward anything. You pay, and then you pay again next year, often at a higher rate.

Why premiums often escape scrutiny

Part of the problem is how premiums show up in your financial life. For many workers, the cost is partially hidden. It's deducted from a paycheck, and your employer often covers a portion. It feels bundled with benefits, not as a bill.

This setup can make premiums feel less "real" than, say, a car payment you actively pay each month. Cuban's point is that this lack of visibility reduces pressure. People are less likely to question costs they don't actively manage, and this might allow prices to rise with less resistance.

You're paying more and still paying later

Another layer to this issue is that premiums aren't your only health care cost. Even after covering premiums, you may still face deductibles before coverage kicks in, co-pays, and out-of-pocket maximums.

With traditional debt, making payments reduces what you owe. However, insurance typically stacks several costs. You pay premiums just to access a system that could still require significant spending later.

That dynamic can make this "hidden debt" even more expensive than it looks on paper.

Why this hits harder as you approach retirement

This issue tends to become more visible later in life. During your working years, employer-sponsored coverage can soften the blow. But as you transition into retirement, this help typically disappears. That's when premiums become fully visible in your monthly budget. Health care is one of the most unpredictable costs in retirement, and a fixed income makes increases harder to absorb.

For many households, this is the moment where they check up on their retirement readiness and realize health care costs weren't fully accounted for.

A mindset shift that could change how you plan

Cuban isn't necessarily offering a policy solution. He's suggesting a different way of thinking. If you treat premiums like debt, you might evaluate plans more carefully during open enrollment and compare total costs, not just monthly payments.

This shift doesn't eliminate the cost, but it could help you make more intentional decisions, especially when those costs start to compete with other financial priorities.

What this means for your financial strategy

Seeing premiums as debt might feel uncomfortable, but it can also be clarifying. It highlights that some of your largest expenses might not build wealth, and certain "fixed" costs might deserve more attention. Long-term planning needs to include these ongoing, raised obligations.

For anyone building a retirement plan, this perspective could change how you allocate savings and estimate future expenses.

Bottom line

Mark Cuban's framing forces a rethink: insurance premiums aren't just another background expense. They function a lot like a lifetime financial obligation with no payoff date. That matters because it changes how you prioritize them. When you start treating premiums like debt, they move from "fixed cost" to something worth reviewing, comparing, and questioning every year, especially as they continue to rise faster than many household incomes.

One practical takeaway is to model premiums the same way you would a loan in your long-term planning. Estimate what you might spend over 10, 20, or even 30 years, and factor in steady increases. That bigger-picture view could help you prepare yourself financially and make adjustments earlier, whether that means building a larger health care buffer, choosing different coverage, or stress-testing your budget to better withstand economic downturns.

You May Also Like

7 Ways To Get Money Without Getting A Second Job

Read More

How To Save Money on Car Insurance: 12 Ways to Lower Rates

Read More

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

Read More

19 Dumbest Things Smart People Waste Money On

Read More

7 Moves If You Want to Stop Living Paycheck to Paycheck

Read More

7 Clever Ways to Crush Your Debt

Read More

Up To 5% Cash Back

Discover it^® Cash Back

Benefits Card Details

• $0 annual fee
• Intro APR on purchases and balance transfers
• Apply Now

• INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
• Redeem cash back for any amount. No annual fee.
• Get a 0% intro APR for 15 months on purchases. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
• Terms and conditions apply.

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

on Capital One's secure website

Rates and fees

Read Card Review

Intro Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

$0

+ -

Why we like it

• The Discover it^® Cash Back is ideal for anyone who loves flexible rewards options.

• Cardholders can redeem their cash back for any amount.

• Earn 5% cash back on rotating bonus categories up to the quarterly maximum when you activate, along with 1% cash back on all purchases. Categories may include places like gas stations, grocery stores, restaurants, and more.

• Apply Now

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms