Connecticut Governor Ned Lamont intends to propose a levy on major companies whose employees rely on Medicaid for health care, seeking at least $100 million in new annual revenue to offset federal cuts that have driven up the cost of coverage under the Affordable Care Act.

Background

The initial revenue target is roughly equivalent to the one-time subsidy the state is paying this year to offset the loss of federal tax credits that otherwise would have resulted in sharply higher premiums for low- and middle-income households seeking to buy health insurance on Connecticut’s exchange.

Lamont said in an interview that he intends to impose a fee on large companies equivalent to $1,000 for each of their employees who qualify for Medicaid. This move is seen as a departure for a governor who generally has been wary about imposing new taxes or fees that could increase the cost of doing business in Connecticut.

Similar Efforts in Other States

The idea of taxing, fining or otherwise demanding revenue from companies whose employees qualify for Medicaid is being debated in several states. New Jersey Governor Mikie Sherrill, a political moderate, wants to fine large employers with workers on Medicaid an aggregate $145 million by demanding payments of up to $725 annually for every person covered by the public health program.

Original reporting: The Connecticut Mirror — read the source article.