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After Pushing Medicaid, New Jersey Fines Businesses Whose Employees Use It

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17.07.2026

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After Pushing Medicaid, New Jersey Fines Businesses Whose Employees Use It

The measure imposes an annual fee (translation: tax) on employers with at least 50 employees receiving health coverage through Medicaid.

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When Democrats say something is about health care, it often isn’t about health care. That’s the lesson of a law the New Jersey Legislature recently enacted.

Gov. Mikie Sherrill, D-N.J., claimed that the measure “asks any company with 50 or more employees on Medicaid … to cover their workers, which they should do anyway, or pay a fine.” But if she wanted to promote enrollment in private health coverage, she and her colleagues had better avenues to pursue than a blunt tax instrument. Sherrill should call the new measure for what it is: a cash grab to fund an ever-expanding welfare state.

The New Jersey measure, a version of which California is reportedly considering, imposes an annual fee (translation: tax) on employers with at least 50 employees receiving health coverage through Medicaid. Employers with 50-249 employees on Medicaid will pay $325 per year for each employee, and each dependent, on Medicaid; employers with 250-499 employees on Medicaid will pay $525 annually for each employee and each dependent; and employers with 500 or more employees on Medicaid will pay $725 per year for each employee and each dependent enrolled in Medicaid.

The bill exempts part-time and seasonal workers, as well as those with intellectual, developmental, and/or physical disabilities........

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