Rising health-care costs force Pennsylvania county to raise property taxes by 22%

Bob Herman interviewed state and local officials, health policy experts, and industry executives about the growing burden of health‑care expenses for government workers. The investigation found that rising medical costs are increasingly shouldered by taxpayers, prompting steep tax hikes in some areas.

In Dauphin County, Pennsylvania, leaders approved a 22% property‑tax increase in December 2024 – the first such rise in two decades – to cover the surge in employee health‑care spending. This came even as the county reduced its workforce by nearly one‑fifth over the past 20 years.

The report highlights how rigid state policies and political decisions push health‑care costs onto civil servants and the public, creating fiscal pressure on local budgets and raising concerns about the sustainability of public‑sector benefits.

These findings suggest that health‑care cost inflation could continue to drive similar tax measures in other jurisdictions unless systemic reforms are pursued.