New Jersey is launching a new fee on companies whose workers have Medicaid health coverage instead of being covered by their employers. Other states are considering it, too.
Democratic lawmakers and governors see it 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 and may lead to a reduction in the number of people with coverage.
Proponents also say it’s about fairness because employers benefit from having some lower-income workers with taxpayer-funded health coverage.
Business groups object. So do some liberal policy organizations.
New Jersey is putting the fee in place
