New Jersey is launching a new fee on companies whose workers have Medicaid health coverage instead of being covered by their employers. This move is seen 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.

Background

Democratic lawmakers and governors view this as a matter of fairness, as employers benefit from having some lower-income workers with taxpayer-funded health coverage. However, business groups and some liberal policy organizations object to the approach, citing potential negative impacts on employment decisions and the economy.

The fee will be applied to companies with at least 50 workers covered by Medicaid, with the state budget expecting to raise $145 million this year from the program. The fees per person will 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.

National Implications

Other states, including California, Colorado, and Oregon, are considering similar measures. California has passed a bill directing the state administration to present lawmakers with options for implementing a charge next year. Connecticut Governor Ned Lamont has also called for a similar move in his state.

Proponents argue that this approach is necessary to address the expected increase in Medicaid costs due to federal policy changes. However, opponents argue that it could lead companies to employ fewer people from low-income households or single parents, and could also make employees less likely to enroll in Medicaid.

Original reporting: KTBS 3 (Shreveport) — read the source article.