In 2022, Medicaid transfers in New Castle County totaled $1.94 billion, amounting to $3,363 per capita, or 26.9% of total government transfers, according to information from the Economic Innovation Group.
Among all government transfer programs, Medicaid was the second largest contributor in the county. Social Security was the largest contributor, totaling $2.26 billion, equating to $3,919 per capita and making up 31.3% of total transfers.
Comparatively, Medicaid transfers across Delaware amounted to $3.28 billion, ranking second lowest among all transfer types within the state. This translates to an average of $3,225 per capita, or 23.3% of total government transfers. Including all transfer types, government transfer payments totaled $14.12 billion, accounting for 21.9% of residents’ total income, with an average of $13,866 per resident.
Medicare was the third largest contributor in New Castle County in 2022, accounting for $1.58 billion, averaging $2,737 per capita, representing 21.9% of transfers. Income Maintenance transfers provided another $725.27 million, averaging $1,260 per capita and comprising 10.1% 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 17.1% of the population aged 65 and older, New Castle County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in New Castle County, excluding government transfers was $53,873, which is noticeably below the county’s total income of $66,397, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, New Castle County saw an increase in its Medicaid transfer dependency by 0.8%, 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 New Castle County, reliance on government transfers has similarly increased from 5.4% (or $1,614 per capita) in 1970 to 18.9% (or $12,524 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| New Castle County | 1 | 18.9% | 17.1% | 5.9% | 4.1% | 5.1% | 1.9% | $12,524 |
| Sussex County | 2 | 26.4% | 30.2% | 10.4% | 6.8% | 5.1% | 1.8% | $17,120 |
| Kent County | 3 | 26.5% | 18.2% | 8.2% | 6% | 5.3% | 2.9% | $13,543 |
