Mark Cuban's Blunt Warning Every Retiree Should Hear Before Medicare Open Enrollment

Medicare open enrollment is just a few weeks away. It begins on Oct. 15 and runs through Dec. 7.

For most people, this period marks the one time each year when they are allowed to make significant changes to their Medicare coverage.

With open enrollment on the horizon, now might be the time to heed a warning from billionaire Mark Cuban about how current trends may make Medicare more expensive and put your financial fitness at risk.

Cuban's warning about health insurers

Although Cuban has a history of criticizing President Donald Trump, he has praised the current administration's efforts to reduce health care costs.

Among other things, Trump intends to pressure health insurers to lower their prices in an attempt to make health care more affordable for Americans.

However, Cuban recently wrote that the administration's efforts are "missing an important piece."

On X, Cuban wrote, "The expectation that giving insurance companies more leverage in certain negotiations will lead them to passing on any cost reductions to plan holders or anywhere among their hundreds or thousands of subsidiaries, is ridiculous."

Instead, Cuban suggests that insurers traditionally have found ways to pocket savings rather than passing them on to consumers. He believes such companies are likely to do so in the future as well.

As a result, any savings that are on the horizon may not end up in the average American's pocket.

Cuban's fix for the problem

Cuban is urging the Trump administration to take steps to ensure insurance companies don't take advantage of the savings they rack up.

"The administration has to go much further and make sure these changes are not gamed," he wrote on X.

Ending confidentiality clauses that prevent the public from reviewing pricing contracts between insurers and health care providers is one potential fix, Cuban says.

If such a change is implemented and insurers and hospitals break the new rule, Cuban recommends slapping them with fines of $1 million each day.

"The ONLY way you are going to know the carriers and hospitals followed through and adhered by the rules, without gaming them, is by making them publish their contracts," Cuban wrote on X. "With pricing. Terms. Everything."

Cuban's criticisms of price opacity

Cuban has said that opacity in drug and health-care pricing also raises costs.

The billionaire is co-founder of Cost Plus Drugs, a for-profit company that distributes prescription drugs with the goal of lowering generic drug prices by taking pharmacy benefit managers and others out of the process.

Cost Plus Drugs sells generics at a cost, plus a flat markup.

Of course, this means that Cuban is far from a neutral observer when it comes to issues surrounding the price of health care and prescription drugs. But that doesn't necessarily mean his criticisms should be rejected out of hand.

Higher costs and Medicare beneficiaries

Cuban says health care costs are also rising for beneficiaries enrolled in Medicare.

In March, he blasted soaring Medicare Advantage expenses, noting that while the program was intended to have lower costs than traditional Medicare, things have not panned out that way.

Instead, rising costs are making it harder for most Americans to afford their health care coverage, he says.

On X, Cuban wrote, "EVERY SINGLE FAMILY IN THE USA IS PAYING $800 A YEAR to the big insurance companies because taxpayers pay them more than it costs to support Trad Medicare."

Lowering your Medicare costs

Cuban's criticisms are a reminder that neither Medicare beneficiaries nor younger Americans with health insurance should count on reform. Instead, they must take matters into their own hands and try to reduce their own individual expenses.

Here are some steps you should take during open enrollment to lower your Medicare costs in 2027.

Review your current Medicare Advantage or traditional Medicare plan

In September, you should receive an Annual Notice of Change (ANOC) from your Medicare Advantage or Medicare Part D drug plan detailing key changes for 2027.

The letter details changes regarding costs, coverage, and other aspects of your plan. Use the letter as a guide to decide whether it might make sense to make coverage changes.

Compare out-of-pocket limits and drug formularies

In 2027, the maximum Medicare Part D deductible is $700. However, some plans have a lower deductible or waive it altogether.

Medicare Advantage out-of-pocket maximums for in-network care in 2027 are $9,850. The combined in-network and out-of-network maximum rises to $14,800. Many plans set their maximums below these numbers.

Since the amounts are not uniform across all plans, it pays to shop around during open enrollment.

In addition, it's important to note that drug formularies in Medicare Advantage plans change each year. So, make sure your plan covers the drugs you need in 2027.

Watch for premium increases and coverage changes

If you have Medicare Advantage, look to see if your current plan's premium is slated to increase next year. Also, check for any other changes that are coming to your coverage.

You might want to consider a new plan if anything is changing in a way that is a disadvantage to you and your wallet.

Switch plans or seek lower-cost pharmacy options

After you have taken a close look at the new plans on offer, decide whether 2027 is the year to switch plans or look for lower-cost pharmacy options.

It's true that there is no way for you to control the general rise in Medicare costs. However, you always have the option to take steps to make sure your particular coverage is more affordable.

Bottom line

Cuban's warnings are a reminder that health care costs are rising for everyone, including Medicare beneficiaries.

Use this year's open enrollment to take steps that help you stretch your retirement dollars further. There are many ways to ensure 2027 health care costs won't spiral out of control.

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