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Maryland State Wire

Saturday, May 3, 2025

2022: Correlation between aging and increasing government transfer dependency in Maryland?

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John Lettieri, President and CEO of Economic Innovation Group | Official Website

John Lettieri, President and CEO of Economic Innovation Group | Official Website

In 2022, Maryland received $66.1 billion in government transfer payments, equivalent to $10,724 per capita. These payments—which include Social Security, Medicare, Medicaid, and income maintenance—accounted for 15.3% of all personal income in the state, according to information from the Economic Innovation Group.

This marks a slight increase in the state’s reliance on government transfers compared to 2012, when such payments made up 12.8% of total income. Since then, the share has risen by 2.5%.

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).

In 2022, government transfers in Maryland were primarily directed toward programs typically associated with older adults—such as Social Security transfers, which totaled $21 billion (31.7% of all transfer income), and Medicare, which accounted for $16.2 billion (24.5%)—played a significant role in the state's overall income.

On a per capita basis, Social Security payments rose from $2,649 in 2012 and $703 in 1970 to $3,404 in 2022, reflecting a 28.5% increase over the past decade and a 384.2% shift since 1970.

Similarly, Medicare transfers climbed from $2,079 in 2012 and $150 in 1970 to $2,627, marking 26.4% and 1,651.3% increases, respectively.

These increases in per capita payments align with shifts in the state’s age distribution. In 2022, residents aged 65 and older made up 16.7% of the total population, compared to 13% in 2012 and 7.6% in 1970. While the senior share of the population has increased, the rise in per capita Social Security and Medicare transfers suggests that these assistance programs for older adults now require a larger share of government funding—either due to growing needs, expanded eligibility, higher benefit levels, or increased enrollment.

According to the Economic Innovation Group, total income in Maryland excluding public assistance amounted to $59,504 per capita in 2022, compared to $70,228 when government transfers were included.

Breaking down the other contributions in the state, Medicaid transfers made up $15.5 billion, a 23.5% share of total income, while income maintenance programs, including assistance such as SNAP or TANF, added another $7.1 billion, or 10.7% of the total.

Compared to the previous year, Maryland's reliance on government transfers decreased by 2.9%.

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.

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.

Breakdown of Government Transfers by Program in Maryland, 2022
Social Security Transfers [31.7%]Medicare Transfers [24.5%]Medicaid Transfers [23.5%]Income Maintenance Transfers [10.7%]

2022 U.S.A. State Rankings and Government Transfer Dependency Metrics

StateRankDependency on Transfers (%)% Population 65+Social Security Transfers (%)Medicare Transfers (%)Medicaid Transfers (%)Income Maintenance Transfers (%)Per Capita Transfers ($)
West Virginia128.9%21.1%33.7%23.9%19.8%10.9%$14,450
New Mexico226.5%19.3%27.7%18.2%29%15.7%$13,842
Mississippi325.8%17.2%33.6%26.1%16.8%12.1%$11,984
Kentucky424.8%17.4%30.9%23.2%26.3%10.1%$12,890
Louisiana523.9%16.8%27.2%23.7%26.7%12.8%$13,019
Arkansas623.7%17.7%32.7%23.5%23.5%9.6%$12,493
Alabama723.4%17.9%35%25.7%12.5%12.4%$11,924
Maine822.7%22.4%33.6%23.7%20.5%11.9%$13,779
South Carolina922.4%18.9%36.6%25.8%12.3%11%$12,028
Delaware1021.9%20.6%33.8%23.3%23.3%9.2%$13,866
Michigan1120.7%18.6%37.4%25.7%18.1%10.7%$11,834
Oklahoma1220.7%16.3%32%24.3%17.2%12.4%$11,654
Arizona1320.7%18.9%31.6%22.1%24.4%8.9%$12,093
Alaska1420.6%13.9%19.4%13.4%24%11.1%$14,153
Ohio1520.2%18.3%32.5%25.9%22.4%10.8%$11,680
Pennsylvania1620.1%19.5%33.4%24.5%25.4%9.3%$12,986
Oregon1720.1%19.1%32.7%21.4%26.1%9.8%$12,514
Vermont1820%21.4%36.8%20.8%24.1%8.7%$12,623
Missouri1919.8%17.9%34.7%26%20%8.6%$11,453
Indiana2019.8%16.8%34.3%24.3%22.1%10.9%$11,545
North Carolina2119.8%17.2%33.9%24.3%15.7%11.7%$11,491
Rhode Island2219.6%18.8%32.7%23%24.4%10.2%$12,447
Tennessee2319.2%17.1%35.3%25.7%15.6%11.5%$11,209
Florida2418.9%21.4%34.1%28.9%12.4%9.4%$12,269
Montana2518.3%20%36.2%22.6%19.3%7%$11,163
Hawaii2618.2%18.1%33.8%21.5%19.7%13.6%$11,236
Wisconsin2718.1%18.6%38.2%24.8%18%9.5%$11,137
Idaho2818%16.9%35.9%22.7%17.5%11.5%$10,187
Iowa2917.9%18.1%37%24.7%20.3%8.4%$10,773
New York3017.9%18%26.8%22.2%32.1%12.8%$13,463
Georgia3117.6%15%32.6%24.7%13.3%14.5%$9,964
Kansas3216.7%17%37.7%25.9%15.9%9.1%$10,119
Nevada3316.5%17%32.8%26%15.5%12.3%$10,264
Minnesota3416.5%17.3%33.1%21.9%26.4%9.7%$11,379
Illinois3516%17%32.1%24.4%20.1%14.9%$10,848
Nebraska3616%16.8%34.1%25%17.6%8.3%$10,262
South Dakota3715.7%18%35.8%24.5%13.4%12.4%$10,713
Virginia3815.7%17%33.3%21.6%20.8%10%$10,811
Texas3915.5%13.4%28.5%24.3%19.9%13.3%$9,720
California4015.5%15.7%24.6%22.5%26.7%14.6%$11,927
Maryland4115.3%16.7%31.7%24.5%23.5%10.7%$10,724
New Hampshire4215.1%20%42.2%25.3%16.4%5.6%$11,127
Massachusetts4314.9%18%28.7%24%25.1%15.4%$12,629
Wyoming4414.8%18.6%37.6%23.5%11.5%6.5%$10,831
New Jersey4514.4%17.3%33.6%25.1%21.3%10.3%$11,114
Connecticut4614.3%18.6%34%25.4%24%9%$11,828
Washington4714.2%16.7%33.8%20.8%21.4%9.8%$10,697
North Dakota4814.1%16.6%33.9%23.6%20.5%7.8%$9,913
District of Columbia4913.8%13%17.1%16.5%44%15.8%$13,278
Colorado5013.2%15.6%30.8%21.4%21.3%13.3%$10,012
Utah5112.7%11.9%33.7%21.9%17.4%11.6%$7,551

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