One look at the Humira Medicare cost increase is going to have you questioning if these high rates are price gouging, and if this practice is even legal in the United States? The short answer is no, sadly – this isn’t an illegal price increase you’re seeing. But price gouging does happen in the US, and yes, it is very legal.
Didn’t expect that, did you?
Unlike all other private insurance companies, Medicare is not allowed to negotiate with drug companies to get you a better deal. This means that your Humira Medicare cost for drugs and prescriptions can be whatever the company wants. This leads to a lot of price gouging and 200% profits for many companies, as once they pay off the initial research investment for a drug the prescription itself costs pennies.
Government officials are working on lowering costs with drug manufacturers, but it takes time. Until then, this legal form of price gouging will stay around.