STAT+: How health care costs are undermining America’s public-sector employers

Dauphin County Commissioner Justin Douglas oversaw a property tax increase to help cover rising health care cost. What’s happening in Dauphin County is common nationwide.Rachel Wisniewski for STAT Rigid state policies and political whims push the rising cost of health care on to taxpayers and civil servants Aug. 18, 2026 Herman interviewed more than a dozen state and local government leaders, health policy experts, and industry executives for this story, part of STAT’s Out of Pocket, Out of Reach series. He also reviewed government meetings, contracts, health plan documents, and administrative complaints and appeals. Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09. Residents of Pennsylvania’s Dauphin County — home of the state capital, Harrisburg, and the chocolaty oasis of Hersheypark — were shocked with unwelcome news in December 2024. For the first time in two decades, the county’s leaders had not only voted to raise their property taxes, but did so by a whopping 22%. What they may not have realized: That higher tax bill was needed to help offset the soaring health care costs of the county’s employees. Over the past 20 years, even as Dauphin County cut its workforce by 19%, its health care spending more than doubled. Per-employee costs tripled. If the county didn’t raise property taxes, officials would have had to consider slashing health benefits for a dwindling staff who rely on them. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts. Already have an account? Log in View All Plans To read the rest of this story subscribe to STAT+. Subscribe Business of Health Care Reporter Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.