In 2022, Medicaid transfers in Arizona totaled $21.71 billion, amounting to $2,950 per capita, or 24.4% of total government transfers in the state, according to information from the Economic Innovation Group.
Among all government transfer programs, Medicaid was the second largest contributor. Social Security was the largest, totaling $28.16 billion, equating to $3,826 per capita and making up 31.6% of total transfers.
Medicare was the third largest contributor in Arizona in 2022, accounting for $19.64 billion, averaging $2,669 per capita, and represented 22.1% of transfers in the state. Income Maintenance transfers provided another $7.92 billion, averaging $1,076 per capita and comprising 8.9% of government support, making them the smallest contributors.
Statewide, including all transfer types, government transfer payments totaled $88.99 billion, and accounted for 20.7% of residents’ total income, with an average of $12,093 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 18.9% of the population aged 65 and older, Arizona has a significant demand for programs like Social Security and Medicare. The total per capita income in Arizona, excluding government transfers was $46,349.1, which is noticeably below the county’s total income of $58,442, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Arizona saw an increase in its Medicaid transfer dependency by 0.5%, 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 Arizona, reliance on government transfers has similarly increased from 7.7% (or $1,807 per capita) in 1970 to 20.7% (or $12,093 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Maricopa County | 1 | 16.3% | 16.2% | 5.3% | 3.7% | 3.5% | 1.5% | $10,359 |
| Pima County | 2 | 26.2% | 21.5% | 8.1% | 5.3% | 7.7% | 2.2% | $14,288 |
| Pinal County | 3 | 27.3% | 21.4% | 9% | 6.3% | 6.7% | 2.3% | $12,560 |
| Yavapai County | 4 | 31.6% | 34.2% | 13.8% | 8.9% | 2.8% | 1.6% | $16,352 |
| Mohave County | 5 | 34.4% | 32.5% | 14.1% | 9.9% | 2.8% | 2.6% | $15,357 |
| Yuma County | 6 | 27.3% | 20.7% | 7.2% | 6.1% | 6% | 3.9% | $12,236 |
| Cochise County | 7 | 38% | 24.7% | 9.7% | 7% | 12.4% | 2.8% | $19,084 |
| Navajo County | 8 | 47.8% | 20.1% | 10.3% | 8.1% | 20.3% | 4.5% | $20,129 |
| Coconino County | 9 | 20.8% | 14.5% | 5% | 3.3% | 7.8% | 1.7% | $12,264 |
| Apache County | 10 | 52.6% | 16.7% | 7.3% | 6.9% | 29.2% | 5.1% | $24,021 |
| Gila County | 11 | 44.9% | 31% | 12.9% | 8.4% | 17.3% | 2.7% | $22,675 |
| Santa Cruz County | 12 | 27.5% | 19.5% | 7.3% | 4.6% | 9% | 4.1% | $13,158 |
| Graham County | 13 | 40.2% | 14.7% | 7.3% | 4.7% | 22.1% | 2.9% | $16,472 |
| La Paz County | 14 | 41.9% | 42.8% | 12.1% | 10.1% | 12.7% | 2.8% | $22,615 |
| Greenlee County | 15 | 27.8% | 14.5% | 5.2% | 3.3% | 15.9% | 1.4% | $15,060 |
