New Jersey is set to charge companies with workers on Medicaid. Other states may follow

(AP) 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.

https://apnews.com/article/medicaid-employers-states-taxes-04356a421cb832340acc8f179ecc1d79