In 2022, Medicaid transfers in Montgomery County totaled $1.69 billion, amounting to $1,605 per capita, or 19% of total government transfers, according to information from the Economic Innovation Group.
Among all government transfer programs, Medicaid was the second smallest contributor in the county. Social Security was the largest contributor, totaling $3.32 billion, equating to $3,157 per capita and making up 37.5% of total transfers.
Comparatively, Medicaid transfers across Maryland amounted to $15.52 billion, ranking second lowest among all transfer types within the state. This translates to an average of $2,517 per capita, or 23.5% of total government transfers. Including all transfer types, government transfer payments totaled $66.11 billion, accounting for 15.3% of residents’ total income, with an average of $10,724 per resident.
Medicare was the second largest contributor in Montgomery County in 2022, accounting for $2.28 billion, averaging $2,171 per capita, representing 25.8% of transfers. Income Maintenance transfers provided another $786.45 million, averaging $747 per capita and comprising 8.9% of government support, making them the smallest contributors.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
With 17.1% of the population aged 65 and older, Montgomery County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in Montgomery County, excluding government transfers was $84,967, which is below the county’s total income of $93,395, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Montgomery County saw an increase in its Medicaid transfer dependency by 0.1%, reflecting both rising transfer amounts and stagnating or insufficient other sources of income.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans’ income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Montgomery County, reliance on government transfers has similarly increased from 2.4% (or $1,005 per capita) in 1970 to 9% (or $8,428 per capita) in 2022.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Baltimore (Independent City) | 1 | 30.9% | 15.4% | 5.1% | 6.1% | 13.5% | 4.9% | $18,497 |
| Baltimore County | 2 | 17% | 18.2% | 5.9% | 4.6% | 3.6% | 1.8% | $11,498 |
| Baltimore city | 2 | 17% | 18.2% | 5.9% | 4.6% | 3.6% | 1.8% | $11,498 |
| Montgomery County | 4 | 9% | 17.1% | 3.4% | 2.3% | 1.7% | 0.8% | $8,428 |
| Prince George’s County | 5 | 16.9% | 15.1% | 4.8% | 3.9% | 3.7% | 2.1% | $8,934 |
| Anne Arundel County | 6 | 11.8% | 15.9% | 4.4% | 3% | 1.9% | 1% | $9,317 |
| Harford County | 7 | 15.4% | 17.4% | 5.8% | 4.2% | 2.4% | 1.2% | $10,398 |
| Howard County | 8 | 8.7% | 15.3% | 3.4% | 2.2% | 1.3% | 0.7% | $7,737 |
| Frederick County | 9 | 11.8% | 15.3% | 4.5% | 3.2% | 1.9% | 0.9% | $8,516 |
| Washington County | 10 | 23.4% | 18% | 7.6% | 5.9% | 5.4% | 2.7% | $12,503 |
| Carroll County | 11 | 13.8% | 17.9% | 5.7% | 3.8% | 2.3% | 0.8% | $9,801 |
| Charles County | 12 | 14.9% | 13.7% | 4.4% | 3.4% | 2.5% | 1.5% | $9,377 |
| Wicomico County | 13 | 28.5% | 16.8% | 8.3% | 6.1% | 8.1% | 3.7% | $13,146 |
| Cecil County | 14 | 21.5% | 17.1% | 7% | 5.5% | 4.5% | 2.2% | $12,027 |
| Allegany County | 15 | 37.6% | 21.2% | 10% | 9.3% | 11.1% | 3.8% | $17,387 |
| St. Mary’s County | 16 | 14.7% | 14.1% | 4.5% | 3.2% | 2.8% | 1.6% | $9,698 |
| Calvert County | 17 | 13.9% | 16.3% | 5.2% | 3.6% | 2.3% | 1% | $9,840 |
| Worcester County | 18 | 23.7% | 28.8% | 9.6% | 6.8% | 3.8% | 1.6% | $15,267 |
| Talbot County | 19 | 17.5% | 29.9% | 7.3% | 5.2% | 2.5% | 1.2% | $15,472 |
| Queen Anne’s County | 20 | 13.8% | 20.5% | 5.8% | 3.8% | 2.2% | 0.9% | $10,978 |
| Dorchester County | 21 | 29.4% | 23.1% | 8.7% | 7.1% | 7.9% | 3.8% | $16,395 |
| Caroline County | 22 | 26% | 17.5% | 7.3% | 6% | 8% | 3.1% | $14,452 |
| Garrett County | 23 | 27.4% | 24.3% | 9.4% | 6.2% | 7.4% | 2.3% | $14,503 |
| Somerset County | 24 | 37.8% | 18.1% | 10.2% | 7.6% | 11.7% | 5.4% | $14,555 |
| Kent County | 25 | 23.7% | 28% | 9% | 7% | 4.4% | 1.8% | $16,487 |
