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Monday, March 31, 2025

Waldo County: Medicaid transfers accounted for 5.1% of income in 2022

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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, Medicaid transfers in Waldo County totaled $111.21 million, amounting to $2,764 per capita, or 18.4% 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 $201.71 million, equating to $5,013 per capita and making up 33.5% of total transfers.

Comparatively, Medicaid transfers across Maine amounted to $3.91 billion, ranking second lowest among all transfer types within the state. This translates to an average of $2,821 per capita, or 20.5% of total government transfers. Including all transfer types, government transfer payments totaled $19.09 billion, accounting for 22.7% of residents’ total income, with an average of $13,779 per resident.

Medicare was the second largest contributor in Waldo County in 2022, accounting for $145.56 million, averaging $3,617 per capita, representing 24.1% of transfers. Income Maintenance transfers provided another $72.83 million, averaging $1,810 per capita and comprising 12.1% 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 25.1% of the population aged 65 and older, Waldo County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in Waldo County, excluding government transfers was $39,733, which is far below the county's total income of $54,715, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, Waldo County saw an increase in its Medicaid transfer dependency by 0.3%, 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 Waldo County, reliance on government transfers has similarly increased from 11.7% (or $2,072 per capita) in 1970 to 27.4% (or $14,982 per capita) in 2022, reflecting broader national trends.

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 Waldo County, 2022

Social Security (33.5% or $201.71 million)Medicare (24.1% or $145.56 million)Medicaid (18.4% or $111.21 million)Income Maintenance (12.1% or $72.83 million)All Other Government Transfers (11.9% or $71.57 million)

2022 Maine County Rankings and Government Transfer Dependency Metrics
CountyRankDependency on Transfers (%)% Population 65+Social Security Transfers (%)Medicare Transfers (%)Medicaid Transfers (%)Income Maintenance Transfers (%)Per Capita Transfers ($)
Cumberland County115.3%20.4%5.5%3.8%3.1%1.6%$11,909
York County219.3%22.3%7.3%5.2%3%2%$12,568
Penobscot County326.7%20.2%8.4%5.8%5.8%3.5%$13,855
Kennebec County425.2%21.2%7.8%5.6%5.5%3.2%$13,946
Androscoggin County527.7%18.9%8.2%5.8%7.1%4.2%$13,577
Aroostook County635%25.7%9.8%7.8%9.2%4.2%$17,806
Oxford County732.4%23.9%10.7%7.7%6.8%4.3%$15,052
Hancock County823.2%26.7%8.2%6.8%3.4%2.3%$14,726
Somerset County933.8%22.9%10.4%7%8.2%4.6%$16,005
Washington County1038.8%26.4%10.6%7.4%11.8%4.5%$19,196
Waldo County1127.4%25.1%9.2%6.6%5.1%3.3%$14,982
Knox County1223.6%28.1%9.1%6.2%3.8%2.4%$14,611
Lincoln County1323.9%29.5%9.7%6.5%2.9%2.3%$14,685
Sagadahoc County1420.6%24.5%8.3%4.7%3.2%2.2%$12,863
Franklin County1530%23.4%10%6.6%6.4%3.8%$14,152
Piscataquis County1633.6%27.6%10.6%8.2%6.4%4.1%$16,727

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