Additional Information on Geographical Rate Differential

Many states use geographical rate differentials. Long ago, Maryland went to great lengths to carefully study IDD system rates, inclusive of the costs to provide support services. A third-party, expert consulting firm was hired to review and analyze Bureau of Labor Statistics (BLS) wage data, costs of living and doing business data for various parts of the State, and other variables in order to fully inform a methodology to determine rates of reimbursement paid to providers of community services. Out of those analyses, the consulting firm recommended—and the State adopted—a geographic differential for six Maryland counties reflects the realities of cost-of-living differences across the State. You can check out 2023 (the most recent available) BLS data. You can look at the data to compare different counties in Maryland and elsewhere using the MIT Living Wage Calculator.