Some states are starting to crack down on companies that foist their workers onto Medicaid

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. New Jersey is putting the fee in place New Jersey Gov. Mikie Sherrill signed a measure Tuesday night to charge employers that have at least 50 workers covered by Medicaid, and the state budget she approved earlier in the week counts on raising $145 million this year from the program. Under the plan, companies will be billed for each employee and employees’ dependent receiving Medicaid, the joint state-federal insurance program. The fees per person would start at $325 a year for companies with 50 to 249 Medicaid beneficiaries and top out at $725 annually for employers with at least 500 recipients. Federal Medicaid changes are prompting Democratic-led states to act A bill passed this week in California doesn’t impose a charge now, but it does direct the state administration to present lawmakers options for doing so next year. Finishing the job would fall to the successor of Gov. Gavin Newsom, a Democrat who is leaving office in January. Democratic gubernatorial candidate Xavier Becerra has made an employer charge part of his election platform. State Sen. John Laird, a Democrat who sponsored the California proposal, said the big tax and policy law President Donald Trump signed a year ago was a major factor in the need for action because it could prompt the state to spend more on Medica