FY 2026 County Workforce Compensation and Benefit Trends

What does it really cost to employ a public sector workforce - and how do these costs change year to year? Behind every county budget are critical decisions about salaries, health benefits, and pensions that are essential for effective workforce and fiscal planning. Every year, Human Resources Officers across each jurisdiction provide valuable insights into the core components of public sector employment.  The FY 2026 County Employee Salaries, Health Benefits, and Pensions Report offers a…

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2026 Issue Preview: Hospital Rate Setting and the AHEAD Model

With the 2026 Legislative Session approaching, MACo is profiling major issues, including hospital rate setting in Maryland, that are likely to receive significant attention. Maryland has long stood apart in how it pays for and provides health care. Its unique all-payer system for setting hospital rates, improved through the state’s Total Cost of Care model, has kept costs down, led to better results, and garnered national attention as a model to follow. As previously covered…

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2026 Issue Preview: Unemployment Insurance

With the 2026 Legislative Session approaching, MACo is profiling major issues, including unemployment insurance, that stand to garner significant attention. Maryland’s Unemployment Insurance system remains solvent for now, but projections show that stability may be short-lived. As previously covered in a MACo deep dive, the federal-state unemployment insurance (UI) system offers temporary financial support to individuals who have lost their jobs, helping to replace a portion of their income while they search for new employment.…

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#MACoCon Recap: Strategies for Prescription Drug Spending

Prescription drug costs are no longer a back-office benefits issue for counties; they’re a frontline challenge shaping budgets, workforce retention, and long-term sustainability. Counties across Maryland are facing a familiar but intensifying challenge: how to sustain high-quality employee health benefits as prescription drug costs continue to climb. At MACo’s Winter Conference, the panel “Rx for Retention: County Strategies for Prescription Drug Spending” brought together county leaders, policy experts, and benefit consultants to unpack what’s driving…

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Howard Announces New Opportunity & Economic Mobility Center

Howard County Government has announced the purchase of the 9755 Patuxent Woods Drive building in Columbia, with the intention of housing several County departments. This new building will become their new opportunity and economic mobility center.  From the press release: "This year has been a challenging one for many of our residents, who were negatively impacted by federal government level cuts and the historic shutdown. With more than 50,000 government employees and contractors calling Howard…

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Maryland Among States Working to Curb Soaring Rx Drug Prices

As federal action on prescription drug costs remains limited, states across the country are stepping in with new laws to make medications more affordable for residents. According to an article from Stateline, in 2025 alone, at least 31 states have enacted nearly 70 laws targeting various parts of the complex drug pricing system, from Pharmacy Benefit Managers to drug manufacturers. Prescription drug prices continue to rise, and local governments are increasingly footing the bill. Counties…

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Changes AHEAD in MD’s Health Care Model?

Maryland’s hospital payment system has long kept costs low, hospitals stable, and care accessible, but the model now faces a major turning point. As the state’s Total Cost of Care waiver nears expiration and Maryland prepares to transition to the federal AHEAD model, potential sweeping changes to hospital payments and healthcare costs could have significant effects on counties as employers and public sector health plan sponsors. Introduction For decades, Maryland has stood apart in how…

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Health Care Costs Keep Climbing for Public Employers

Public employers face rapidly rising health care costs, straining already-tight local budgets. While there are a few immediate fixes, long-term solutions are possible through coordinated action. In a Governing article, health care premiums for 2026 are set to rise far faster than inflation or tax revenues, leaving public employers and employees alike bracing for another expensive year. With costs driven by new treatments, high-priced drugs, and aging workforces, local governments are likely to face increased…

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Maryland Leads in Federal Job Losses

Maryland continues to bear the brunt of federal workforce cuts, having lost thousands of jobs since January. With federal employment a cornerstone of Maryland’s economy, local effects are expected to deepen as additional reductions take effect this fall. In a recent Maryland Matters article, Maryland lost 2,500 federal jobs in August, marking the second straight month the state has led the nation in federal workforce cuts. Since January, Maryland has lost 15,100 federal jobs, nearly…

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Prescription Drug Affordability Board Discusses Policies to Address High-Cost Medications

Maryland’s Prescription Drug Affordability Board is discussing recommendations to address the rising costs of high-priced medications. The discussion highlights both the drivers of affordability challenges and potential solutions, including upper payment limits that could ease strain on residents and county budgets alike. Maryland was the first state in the nation to create a Prescription Drug Affordability Board in 2019. Maryland’s Prescription Drug Affordability Board (PDAB) convened to review policy recommendations and discuss strategies for making…

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