New Jersey is set to charge companies with workers on Medicaid. Other states may follow
Source: AP
Updated 7:18 AM EDT, July 2, 2026
New Jersey is launching a new fee on companies whose workers have Medicaid health coverage instead of being covered by their employers. Other states are considering it, too. Democratic lawmakers and governors see it as a way to help pay for the joint federal and state insurance program that covers low-income residents as federal policy changes are expected to make the program more expensive for states and may lead to a reduction in the number of people with coverage.
Proponents also say its about fairness because employers benefit from having some lower-income workers with taxpayer-funded health coverage. Business groups object. So do some liberal policy organizations.
New Jersey is putting the fee in place
New Jersey Gov. Mikie Sherrill signed a measure Tuesday night to charge employers that have at least 50 workers covered by Medicaid, and the state budget she approved earlier in the week counts on raising $145 million this year from the program.
Under the plan, companies will be billed for each employee and employees dependent receiving Medicaid, the joint state-federal insurance program. The fees per person would start at $325 a year for companies with 50 to 249 Medicaid beneficiaries and top out at $725 annually for employers with at least 500 recipients.
Read more: https://apnews.com/article/medicaid-employers-states-taxes-04356a421cb832340acc8f179ecc1d79
SamuelAdams
(398 posts)Democrats should run on this nationally. Charge large companies whose employees are on any type of government assistance, including Medicaid, food stamps, LIHEAP, CHIP.
popsdenver
(2,845 posts)just start with WALMART.......they give new starts, and current peon employees a sheet of all the places to go for government assistance and food banks.....so they can pay them less in wages.........
We here in Denver are witnessing what the Walmart clan does with all the money they are saving.......
The Walmart Clan now owns every major professional sports team in Denver except the Rockies Base ball team, which no one wants....(due to the fact that NO pitchers want to come to play for Denver, due to the high altitude)
The Walmart clan that just bought the Broncos, have decided to build a new, covered stadium.....They are paying for the stadium, but the city's tax payers, are footing the bill for the massive amounts of infrastructure to accommodate the new stadium, Water, Sewage, Roads, Electrical, Light rail stations, etc the list is endless.......AND the price of tickets is prohibitive, ruling out tons of people who can't afford to go to games.....and the point that no one realizes, is that all the Private Boxes, and most of the good seats are purchased by Corporations so their executives can go to games, and the corporations get to take deductions on their taxes to buy the seats. (all the money they deduct has to be made up by normal taxpayers)
They just as well rename our country.............THE UNITED CORPORATIONS OF AMERICA......
When Corporations and Government merge... it is called FASCISM..............
Fil1957
(979 posts)The Public pays, the profits are privatized.......
like I have said, the way to think about Fascism is that it is a merging of Corporations and Government.....
enough
(13,814 posts)Bob_in_VA
(150 posts)If the workers are low wage who will the business replace them with, more low wage workers? That won't work, they'll still have low wage workers. Hire people at a high enough wage that the new worker no longer qualifies for Medicaid? Why bother? Just give your current workers a higher wage.
While this will affect employers up and down the business size, one of the ones that will be most affected is Walmart, since they have spent decades underpaying their workers, letting us, the taxpayers, foot the bill for Medicaid, food stamps, etc. I would say that it is past time for behemoths like Walmart to "pay their fair share".
the_liberal_grandpa
(347 posts)if they did that.
paleotn
(23,115 posts)Who's going to pick up the slack?
RainCaster
(13,956 posts)This is an idea whose time has come.
Jacson6
(2,342 posts)drmeow
(6,044 posts)I've been wanting this to happen for years!
mcar
(46,608 posts)Random Boomer
(4,423 posts)This comes at the same time that Medicaid is being cut, which means these companies will simply switch to workers who are newly abandoned by the government systems. It puts more pressure on employees than it does on businesses.
There is no logical tie between medical benefits and employment. All this policy does is reinforce the message that it's an employer's responsibility to maintain employee health, as opposed to a government's responsibility to ensure all its people have affordable access to healthcare regardless of employment status.
Stargazer99
(3,609 posts)and it has been rammed down the peons who tolerate it thru being controlled
NJCher
(43,840 posts)I can see the employment ad now: "To qualify for this job, you must be recently abandoned by government systems."
Not gonna' happen in NJ. People here are a lot savvier than that.
modrepub
(4,256 posts)Lets try it and see what happens. Can it be any worse than our current situation?
Alice B.
(764 posts)I can almost feel that coming.
BumRushDaShow
(173,884 posts)with an employer match but obviously some companies offer no health insurance at all, leaving employees to either try the ACA on their own (that they can't afford), or Medicaid.
maxsolomon
(39,477 posts)ANY is bad enough.
BumRushDaShow
(173,884 posts)intheflow
(30,310 posts)Sure, maybe mega-businesses would stop hiring low income workers, but they also rely on low income workers for the vast majority of their employees. These are the businesses that live and die by paying employees as little as possible, usually minimum wage. So are the going to hire less people at a higher wage so they can afford their own insurance, or cut their minimum wage workforce to such an extent that they won't be able to retain employees at all? Also - how would they know if job applicants are "low-income"?