Soaring Healthcare Costs Force U.S. Public-Sector Employers to Raise Taxes and Cut Benefits
Public-sector employers across the U.S. are grappling with rapidly escalating healthcare costs, leading to difficult decisions such as raising property taxes and cutting employee benefits. Dauphin County, Pennsylvania, for example, increased property taxes by 22% in December 2024 and another 10% in December 2025, largely due to healthcare spending that more than doubled over two decades despite a 19% workforce reduction. Per-employee healthcare costs tripled in the county. This situation is not isolated, with states like Arkansas, California, Colorado, Missouri, Nevada, and even the federal government experiencing double-digit premium increases for public worker plans. New Jersey teachers and school workers face premium hikes of 34%. Some public employers are also cutting coverage for GLP-1 drugs for weight loss, as seen in Massachusetts, where the Group Insurance Commission eliminated coverage for these drugs for weight loss to reduce premium increases. These measures highlight the severe financial strain... 
