American billionaire Mark Cuban to Americans: You are getting the 'job killer' wrong, it is not AI; it is your rising ...

American billionaire and Shark Tank judge Mark Cuban has warned that rising healthcare costs, rather than artificial intelligence could pose a bigger threat to jobs in the United States. The founder of Cost Plus Drugs said increasing employer healthcare expenses may lead to more layoffs and reduced hiring in the years ahead. In a post shared on social media platform X (forlmekry known as Twitter) Cuban wrote, “I hope people realize that for the foreseeable future, the cost of healthcare benefits will get more people fired, or not hired, than AI." The comments come at a time when fears around AI-driven job losses continue to dominate workplace discussions. However, Cuban argued that soaring healthcare expenses are placing a greater burden on employers, forcing businesses to rethink hiring plans and workforce costs.The cost picture of US health careAccording to a report by Fortune, the United States spends more on health care than any other country, and the total has climbed sharply. The most recent figures from the Centers for Medicare & Medicaid Services show $5.3 trillion in spending in 2024, about 18% of GDP. That is more than double the $2.5 trillion spent in 2000. On a per-person basis, the U.S. spent $14,775 in 2024, nearly double the $7,860 spent in other high-income countries. Some studies find Americans use less care on average.Employers are feeling the squeeze. A Mercer survey of more than 1,800 employers found health care costs have risen every year for the past five years. Mercer estimates that cost per employee could rise 8.2% in 2027, the biggest jump since 2003. Nearly half of large U.S. employers, those with 500 or more employees, expect to change their medical plans next year, Mercer found. Common changes include higher deductibles or copays that raise workers' out-of-pocket costs.What the research saysPart of Cuban's claim has academic support. A 2024 paper from Yale's Tobin Center for Economic Policy found that a 1% rise in health care prices leads to a roughly 0.4% drop in payroll and employment at employers outside the health sector. "Rather than cutting wages, employers respond to increases in insurance premiums by cutting the number of workers they employ," the paper said. The study measures health care prices' effect on employment. It does not compare that effect with the effect of AI, which is the comparison Cuban made. Fortune did not cite research on that point.Why costs are risingFortune pointed to several causes: higher labor costs, new technology and pricier treatments such as GLP-1 medications. Some experts also cite structural problems in the U.S. health care system, including hospital consolidation and rising administrative costs.Mark Cuban's own stakeCuban is best known as a former Shark Tank investor and longtime Dallas Mavericks owner. He has become deeply involved in the health care industry since launching Cost Plus Drugs, an online discount pharmacy, in 2022.For the past four years, he has offered consumers a lower-cost route to prescription drugs. He says the company can charge less by bypassing pharmacy benefit managers. According to the nonprofit KFF, the three largest PBMs manage about 80% of prescription claims in the US. Cuban has also drawn attention to the growing health care costs that companies face.You use AI every day. Now get your AI Quotient. Take the AIQ test.