Under a new law that took effect July 1, New Jersey has imposed taxes on companies whose employees and employees’ dependents receive Medicaid.
New Jersey’s employer healthcare assistance tax, signed by Gov. Mikie Sherrill last week, aims to ensure that large companies do not rely on the government to provide health coverage to lower-wage employees rather than offering them affordable coverage as required by federal law.
New Jersey estimates that it spends $1,700 per person on Medicaid.
“Instead of asking taxpayers to foot that bill, this budget looks to large employers. It asks any company with 50 or more employees on Medicaid—companies like Amazon and Walmart—to cover their workers, which they should do anyway; or pay a fine,” Sherrill said. …