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

*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