Your Tax Dollar & Medicare Part D

Where does $275.6 billion in prescription drug spending actually go?

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$1,838

Per Taxpayer/Year

$275.65B

Total Part D Spending

$5,301

Per Beneficiary

~52M

Part D Enrollees

Where Your $1838 Goes

Top 10 Drugs: $22 Billion

Just 10 drugs account for 8% of all Part D spending. Eliquis alone costs $7.75 billion — more than NASA's annual science budget.

See IRA negotiated drug prices →

GLP-1 Diabetes/Weight Drugs: $8.4 Billion

Ozempic, Trulicity, and Mounjaro are the fastest-growing drug category. Spending has tripled since 2019.

Track GLP-1 spending →

Brand-Name Premium: $185 Billion

Brand-name drugs cost 4.7x more per claim than generics, yet still account for 13.4% of all prescriptions.

Brand vs Generic analysis →

Cost Per Beneficiary by State

Some states cost Medicare significantly more per patient than others — driven by prescribing patterns, drug mix, and population health.

#StateCost/Patient*Total Cost
1District of Columbia
$1,718
$635.5M
2Alaska
$1,518
$393.3M
3New York
$1,510
$22.46B
4Virgin Islands
$1,470
$32.8M
5Vermont
$1,442
$546.6M
6Kentucky
$1,392
$4.89B
7Oklahoma
$1,387
$3.10B
8Alabama
$1,386
$5.09B
9West Virginia
$1,359
$1.86B
10Indiana
$1,347
$6.29B
11New Jersey
$1,343
$7.73B
12Connecticut
$1,342
$3.96B
13Hawaii
$1,331
$931.1M
14Massachusetts
$1,323
$7.22B
15Georgia
$1,316
$8.63B
16Louisiana
$1,316
$4.53B
17Missouri
$1,315
$5.75B
18Tennessee
$1,306
$6.89B
19Mississippi
$1,298
$2.66B
20Maryland
$1,284
$4.04B

The Big Picture

  • 📈 Part D spending grew 50% from $183B (2019) to $275.6B (2023)
  • 💊 The top 500 drugs account for the vast majority of spending
  • 🏥 1,380,665 providers prescribed 1,615,685,370 claims
  • ⚖️ The Inflation Reduction Act begins negotiating prices for 10 drugs in 2026
  • 💰 If all brand prescriptions switched to generics, estimated savings: $111.27B

Related

*Cost per patient is calculated from provider-level data (patients seeing multiple providers are counted once per provider). Actual Medicare Part D enrollment: ~52 million (CMS 2023). Data from CMS Medicare Part D Public Use Files, 2023. Taxpayer estimates based on ~150M federal income tax filers.Methodology