A pretty good chunk of health care spending goes to prescription drugs, an estimated $693 billion in 2026. Due to our high prices the US is about half the total global market. A large portion of this is borne by patients in the form of copays, coinsurance or deductibles, assuming they have insurance. Drug spending has also grown particularly rapidly, as many expensive new drugs have come on the market and the pharmaceutical manufacturers have been aggressive in raising prices. So where does all that spending go? The single largest chunk is for oncology–cancer drugs, about 18%. A large number of specialized drugs have been developed in the last 15 years, many that are infused, and they all have very high price tags–$200,000 or $300,000 for a course of treatment is not uncommon. And cell therapies tend to be even more expensive.
Other high categories include anti-diabetes drugs, at around 8%, vaccines, around 5%, anti-viral (HIV) drugs, about 5%, medications for arthritis, hypertension, heart disease, mental health and other conditions also have a fair share of total spending. Brand name drugs account for the bulk of spending, even though they are a much smaller share of all prescriptions. The data in the chart below is global, but the relative proportion is accurate for the US as well. (Statista Article)
