Mark Cuban: health care costs, not AI, the real job killer

Cuban's argument lands as companies are preparing to pass along rising health care costs to employees and are scrutinizing headcount partly because of AI tools. Health care costs have climbed for five straight years, according to a survey of more than 1,800 employers by Mercer, and nearly half of large U.S. employers expect to change their medical plans next year.

The link between health prices and employment is not just rhetorical. A 2024 Yale Tobin Center paper found that a 1% increase in health care prices translates to a roughly 0.4% decrease in payroll and employment outside the health sector, with employers cutting worker numbers rather than wages.

Cuban has pushed for federal action, backing the Break Up Big Medicine Act sponsored by Sen. Elizabeth Warren and Sen. Josh Hawley, which has been referred to the Senate Judiciary Committee and not yet passed. Meanwhile, AI job fears persist: McKinsey Global Institute found 11 million workers may have to find new jobs, but Yale's Budget Lab found no clear evidence of AI-driven labor market disruption, even as AI appeared in 21% of layoff announcements this year.