New Jersey Governor Mikie Sherrill signed a law creating a new fee on large employers whose workers rely on Medicaid. Companies with at least 50 employees or dependents enrolled in the state's Medicaid program will pay annual charges starting at $325 per person for 50 to 249 beneficiaries and rising to $725 per person for 500 or more beneficiaries. The state expects the program to generate roughly $145 million this year. Amazon was the largest employer of Medicaid recipients in New Jersey, with about 5,600 workers and more than 10,000 dependents enrolled, while Walmart had more than 10,000 workers and family members on Medicaid. The move comes as states face higher Medicaid costs under new federal work requirements set to begin in 2027, and other Democratic-led states including California, Colorado, Oregon, and Connecticut are exploring similar employer-based fees.
Amazon.com IncAmazon is the largest employer of Medicaid recipients in New Jersey and will face significant new fees under the law.
Walmart Inc.Walmart has over 10,000 workers and family members on Medicaid in New Jersey and will be subject to the new employer fee.