New Jersey is set to charge companies with workers on Medicaid. Other states may follow.
Summary
New Jersey is starting to charge companies fees if their workers use Medicaid for health coverage instead of employer-provided insurance. Other states like California and Connecticut are considering similar fees to help cover rising Medicaid costs due to federal policy changes.Key Facts
- New Jersey Governor Mikie Sherrill approved a new fee on employers with 50 or more workers on Medicaid.
- The fees range from $325 to $725 per Medicaid-covered individual per year, based on company size.
- The state expects to raise $145 million from this program in its first year.
- Medicaid is a joint federal and state program that helps provide health insurance to low-income residents.
- Changes in federal Medicaid rules may increase costs for states and reduce the number of people covered.
- California passed a bill requiring the government to explore similar employer fees, leaving the decision to the next governor.
- Several other states, including Colorado, Oregon, Washington, and Connecticut, have proposed or considered similar charges on employers.
- Supporters say employers benefit from having some employees covered by Medicaid, so charging fees helps share costs fairly.
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