Chris Emigholz, Chief Government Affairs Officer at the New Jersey Business and Industry Association, said on April 13 that the proposed employer Medicaid tax in Governor Mikie Sherrill’s $60.7 billion budget is a major concern for businesses. Speaking on the IssuesWatch podcast hosted by Jeff Kaszerman of the New Jersey CPA Society, Emigholz described this measure as especially problematic for employers.
The discussion matters because it highlights how changes in state policy could affect large employers across New Jersey. The proposed penalty would apply to businesses with 50 or more workers receiving Medicaid benefits, even if those businesses already offer health insurance.
“I do think this is the most anti-business part of the state budget that was proposed,” Emigholz said during his conversation with Kaszerman. He explained that companies could be penalized even when employees decline to enroll in company health plans or do not work enough hours to qualify for coverage. “You might be a large employer that gives great health benefits, but maybe you have a seasonal uptick, and you’ll hire a bunch of people in December to help with the Christmas rush, and those folks don’t get health benefits, but they’re on Medicaid,” Emigholz said. “You’re going to get dinged with this penalty.”
Emigholz also noted that some full-time employees may choose Medicaid over private insurance due to lower co-pays or broader coverage options such as home- and community-based services. He added: “If you’re a large employer, and you’re doing what (the state has) incentivized people to do which is hiring individuals with developmental disabilities, well this community is very highly likely to be on Medicaid. So now you’re getting penalized for hiring somebody with a disability because they happen to be on Medicaid – even if you give great health insurance to your employees. That makes no sense.”
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing various sectors according to its official website. The association advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website.
NJBIA supports private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy along with practical information designed for business prosperity according to its official website.
Listeners can access the full IssuesWatch podcast episode from April 6 online.
