New Jersey governor floats fining employers with workers on Medicaid

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New Jersey Gov. Mikie Sherrill proposed that employers with at least 50 workers on Medicaid should either cover the workers’ healthcare or pay a fine, she said in her 2027 budget address March 10.

The governor said the fines would raise $145 million per year, covering Medicaid strains she attributed to President Donald Trump’s policies. Ms. Sherrill referred to federal funding cuts and impending work requirements to prove eligibility in expansion states, both outlined in HR 1. 

Ms. Sherrill’s proposal also aims to shift private companies’ reliance on public benefits, according to the governor’s “Budget in Brief,” a summary of budget recommendations. While Massachusetts already operates a similar program to the New Jersey governor’s proposal through its employer medical assistance contributions, other states are primarily betting on the work and community engagement requirements as a means of achieving disciplined Medicaid enrollment — and ultimately saving money.

Florida, for example, is working to implement rules that would strive “to make certain we provide the best and most robust services to those truly in need,” Republican Florida state Sen. Don Gaetz said in a March 9 news release regarding the push in his state. Florida’s bill would require occupation for at least 80 hours per month, similar to the federal minimum coming to expansion states, including New Jersey, in 2027.

Becker’s contacted the New Jersey governor’s office and will update this story if more information becomes available.

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