A new fee for companies with workers on Medicaid instead of company coverage. The new measure was signed by New Jersey Governor Mikie Sherrill, noting that it will charge employers with 50 to 249 workers on Medicaid $325 annually per person, and $725 annually for employers with at least 500 workers. This measure is a response to recent changes to Federal Medicaid from Democratic states.
Many Democratic officials see this measure as a way to help pay for the Medicaid program, as the recent federal policy changes are set to make the program more expensive for states to maintain. If nothing changes, this is expected to see the number of people with coverage fall.
A 2025 report by the Congressional Budget Office revealed that by 2034, 10 million Americans will be uninsured due to tax and spending cuts signed by President Donald Trump.
While New Jersey is the first to pass this measure, other democratic aligned states like California have their eyes set on it. Last week, California saw a bill pass that would have the state administration present a similar fee measure to lawmakers.
That said, this measure has seen criticism from business owners and even some liberal policy organizations, due to small businesses expected to be the most affected by this measure. Additionally, liberal organizations have noted that this measure could lead to businesses purposefully not hiring people from low-income backgrounds to prevent the chance of incurring these fees.
