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Vedanth Bhartee
Writer · Reviewed by Richard ChanUpdated Jun 12, 2026
2 min read
Medicare recipients can use Cost Plus Drugs to fill generic prescriptions by paying cash directly, bypassing their Part D insurance.
The pharmacy offers transparent pricing based on the manufacturing cost plus a 15% markup, a $5 pharmacy fee, and shipping costs.
Purchasing medications entirely out-of-pocket means those expenses will not help you exit the Medicare Part D coverage gap (donut hole).
For most of us, the prescription drug routine has always followed the same well-worn path: call your doctor, get the script sent to your pharmacy, wait, go pick it up, and pay — often more than you'd like. That's the old way. But a newer alternative is gaining real traction, and it has the potential to save Medicare beneficiaries significant money without ever setting foot in a retail pharmacy.
It's called Cost Plus Drugs — and it's worth understanding.
Cost Plus Drugs is the brainchild of physician Alex Oshmyansky and entrepreneur Mark Cuban — yes, the Dallas Mavericks owner and celebrated business figure. But beyond the high-profile name, what the company has built is genuinely revolutionary.
The model is simple and radically transparent: Cost Plus Drugs purchases generic medications directly from pharmaceutical manufacturers and sells them straight to consumers at cost plus a 15% markup, a $5 pharmacy fee, and shipping. No middlemen, no hidden markups, no insurance company negotiating on your behalf and pocketing the difference. At present, more than 350 different generic drugs are available through the platform — and the company has announced plans to manufacture some drugs itself in the future, which could drive prices even lower.
The idea has resonated. According to a recent article in the Wall Street Journal, 1.4 million people have already signed up for Cost Plus Drugs.
"Medication prices can vary widely by plan, geography, and even within the same zip code," he adds. "With continued healthcare cost inflation in the U.S., it's becoming ever more important to help consumers save….Our customers can simply order their medication through Cost Plus Drugs if they find that they can save," explained Chan. "Drug program adherence is a critical component of maintaining health and we want our customers to access all available options to help them achieve this," he added.
The Mark Cuban Cost Plus Drug Company operates as a public-benefit corporation — meaning its social mission, improving public health and making medications genuinely affordable, is enshrined alongside its financial objectives. The premise is disarmingly simple but long overdue: no one should have to choose between filling a prescription and buying groceries.
Listen to our podcast interview with Erin Albert from Cost Plus Drugs — Vice President of Pharmacy Relations at the company. Erin explains how Cuban's model is disrupting the pharmaceutical industry and opening up low-cost drug access for people who've long been left behind by an opaque, expensive system. Rising drug prices should not force people into impossible financial choices — and Cost Plus Drugs is on a mission to make sure they don't have to.
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