A Medicaid fee in New Jersey is now in place for some businesses. More states may follow

New Jersey is implementing a new fee for companies with employees who rely on Medicaid rather than employer-provided health insurance. Democratic officials view this as a necessary measure to fund the joint federal and state program amidst rising costs. While proponents argue it ensures fairness, business groups and some liberal organizations oppose the fee. Critics fear the measure could discourage Medicaid enrollment and create significant barriers for low-income individuals seeking or maintaining employment opportunities.