New Jersey Gov. Mikie Sherrill Signs Medicaid Fee For Employers With Workers On Medicaid

New Jersey Gov. Mikie Sherrill signed a measure Tuesday night to charge companies whose workers have Medicaid health coverage instead of being covered by their employers.

“New Jersey is set to charge companies with workers on Medicaid”

Associated Press

The Associated Press says the fee applies to employers with at least 50 workers covered by Medicaid, with annual fees starting at $325 per person for employers with 50 to 249 Medicaid beneficiaries and rising to $725 for employers with at least 500 recipients.

Associated Press

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 Associated Press frames the move as part of a broader response to expected federal changes that could make Medicaid more expensive for states and may reduce the number of people with coverage.

The Associated Press reports that other states are considering similar employer-based Medicaid fees, with California lawmakers advancing a bill that directs officials to study such a charge next year.

In California, the Associated Press says Democratic gubernatorial candidate Xavier Becerra has made an employer charge part of his election platform, and state Sen. John Laird said the big tax and policy law President Donald Trump signed a year ago was a major factor in the need for action.

Benzinga

The Congressional Budget Office, the Associated Press says, expects more than 10 million people will be uninsured because of the law by 2034 and that it requires some beneficiaries to work, be in school or volunteer and to document whether they meet the requirements.

Benzinga adds that other Democratic-led states are exploring similar employer-based Medicaid fees, naming Colorado, Oregon and Connecticut as places where similar proposals surfaced.

Benzinga also says New Jersey’s legislation attempts to address concerns by exempting temporary, seasonal and part-time workers while barring employment decisions based on Medicaid status.

Business groups object to the employer fee, and the Associated Press quotes Christopher Emigholz, the chief government affairs officer at the New Jersey Business and Industry Association, saying, "The fact remains that many job-creators are still going to be penalized for something they have no control over."

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Livingston Enterprise

The Associated Press also quotes Emigholz’s argument that if an employee declines an employer-provided health plan because they’d rather be on Medicaid, it is unfair to penalize the employer for that employee’s decision.

On the liberal policy side, the Associated Press quotes Gideon Lukens of the Center on Budget and Policy Priorities saying the charge could lead companies to employ fewer people from low-income household or single parents.

Benzinga says New Jersey’s law tries to address those concerns by exempting temporary, seasonal and part-time workers while barring employment decisions based on Medicaid status.

The Associated Press adds that most employees at bigger companies would not be at risk of losing Medicaid coverage as long as they’re working at least 20 hours a week.