Green Mountain Times

In 2022, Medicare transfers in Vermont totaled $1.7 billion, amounting to $2,630 per capita, or 20.8% of total government transfers in the state, according to information from the Economic Innovation Group.

Among all government transfer programs, Medicare was the second smallest contributor. Social Security was the largest, totaling $3.01 billion, equating to $4,647 per capita and making up 36.8% of total transfers.

Medicaid was the second largest contributor in Vermont in 2022, accounting for $1.97 billion, averaging $3,040 per capita, and represented 24.1% of transfers in the state. Income Maintenance transfers provided another $713.57 million, averaging $1,103 per capita and comprising 8.7% of government support, making them the smallest contributors.

Statewide, including all transfer types, government transfer payments totaled $8.17 billion, and accounted for 20% of residents’ total income, with an average of $12,623 per resident.

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 21.4% of the population aged 65 and older, Vermont has a significant demand for programs like Social Security and Medicare. The total per capita income in Vermont, excluding government transfers was $50,415.7, which is noticeably below the county's total income of $63,039, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, Vermont saw an increase in its Medicare 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 Vermont, reliance on government transfers has similarly increased from 9.7% (or $2,113 per capita) in 1970 to 20% (or $12,623 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.

County	Rank	Dependency on Transfers (%)	% Population 65+	Social Security Transfers (%)	Medicare Transfers (%)	Medicaid Transfers (%)	Income Maintenance Transfers (%)	Per Capita Transfers ($)
Chittenden County	1	13.9%	16.9%	5.5%	2.4%	3.4%	1.1%	$9,808
Rutland County	2	32.6%	24.7%	9.5%	5.5%	12.9%	2.4%	$19,084
Washington County	3	19.8%	21.7%	6.9%	3.1%	6.4%	1.4%	$13,686
Windsor County	4	20.5%	25.6%	8.2%	5.9%	3%	1.5%	$13,899
Windham County	5	24.3%	25.3%	9%	5.7%	5.4%	2.2%	$13,833
Franklin County	6	18.1%	18%	6.6%	3.3%	3.7%	2.3%	$10,107
Bennington County	7	22.6%	24.6%	8.8%	5.1%	4.3%	2.3%	$13,590
Orleans County	8	29.9%	23.7%	9.2%	6.7%	7.9%	3.2%	$15,888
Caledonia County	9	26.7%	22.9%	9.5%	7.1%	4.8%	2.8%	$13,499
Addison County	10	16.9%	22.8%	7.6%	3.5%	2.7%	1.3%	$10,489
Orange County	11	22.3%	23.6%	8.4%	6.2%	3.3%	2%	$12,483
Lamoille County	12	17.4%	18.8%	6.3%	3.6%	4%	1.7%	$11,153
Essex County	13	30.7%	27.6%	13%	9.8%	0.3%	3.4%	$13,920
Grand Isle County	14	14.5%	23.2%	8%	3.1%	0.1%	1.4%	$10,310