Medicaid proposal by New Jersey governor could shift employer costs

Governor Mikie Sherrill proposed that large employers either provide insurance to workers on Medicaid or pay up to $725 per Medicaid-enrolled employee, and the administration estimates the change would raise about $145 million a year.

New Jersey Governor Mikie Sherrill has proposed a change in how the state funds Medicaid as part of her first budget plan. The plan would require large employers to either offer health insurance to workers who are on Medicaid or pay a fee to the state. The administration says the proposal is intended to reduce taxpayer spending on the NJ FamilyCare program. The proposal is included in Sherrill's $60.7 billion budget and will be considered by the state Legislature. Key details: - Companies with 50 or more employees enrolled in Medicaid could be charged up to $725 per worker each year under the proposal. - The administration estimates the policy would raise about $145 million annually to help offset rising Medicaid costs. - Sherrill said taxpayers currently cover hundreds of millions of dollars each year for employees of large companies that do not offer adequate health insurance; the article references employers such as Amazon, Walmart and Target as examples. - Under the proposed budget, New Jersey would spend roughly $28 billion on Medicaid in the coming year, and the program currently provides coverage to about 1.8 million residents, including people with disabilities and nursing home residents. - Kevin Thompson, CEO of 9i Capital Group, said many people remain on Medicaid because employer coverage can reduce take-home pay and suggested higher wages would be a more direct solution. - Alex Beene, a financial literacy instructor, said states facing tighter budgets are seeking ways to offset costs and that taxing employers is one approach being considered. Summary: The proposal would shift some Medicaid funding responsibility toward large employers and is presented as a way to ease pressure on state finances and hospitals. Supporters point to estimated revenue of roughly $145 million per year, while critics say the change may not reduce enrollment and could meet resistance from large employers. The plan now moves to the New Jersey Legislature for review and debate.