The Assembly on Tuesday passed legislation, opposed by NJBIA, that would assess a $325 to $725 per-employee penalty on businesses that employ at least 50 full-time workers who use the state’s Medicaid program instead of an employer-provided health plan. The bill is expected to be considered by Senate later in the evening.
Although the legislation (A-5324/S-4533) originally called for per employee assessment on all businesses with 50 or more workers receiving Medicaid, legislative committee amendments approved on Sunday created exemptions if the employees on the state-funded Medicaid program are part-time, seasonal or disabled.
“While we appreciate the carveouts for employees who are part-time, seasonal or disabled, the fact remains that many job-creators are still going to be penalized for something they have no control over,” NJBIA Chief Government Affairs Officer Christopher Emigholz said. “If an employee declines an employer-provided health plan because they’d rather be on Medicaid, it is unfair to penalize the employer for that employee’s decision.”
The bill requires an employer to pay a fee of $325 per employee if there are at least 50 employees but less than 250 employees using the state Medicaid program instead of their employer's health plan. Businesses with at least 250 workers but fewer than 500 employees on Medicaid would have to pay $525 per employee, and businesses with over 500 employees on Medicaid would pay $725 for each of those workers.
The Assembly passed the bill by a 48-22 vote.
