|
New Jersey Enacts Medicaid Employer Fee
As part of New Jersey's $60.7 billion budget bill, Gov. Mikie Sherrill signed AB 5324 into law on June 30. The legislation imposes annual per-person fees of $325, $525, or $725 on employers with 50 or more workers and dependents enrolled in Medicaid, based on the employer’s total number of Medicaid-enrolled workers and dependents.
Why It Matters: In passing this bill solely with Democratic votes, New Jersey joins California, Colorado and Washington in "fair share" proposals shifting Medicaid costs onto employers.
What’s Next: While the law does not designate franchisors as the responsible party, it is expected to apply to roughly 750 employers. The law took effect July 1, 2026, with the first fee assessments scheduled for March 1, 2027. It could add to the cost pressures facing franchisees and other small business operators in the state.
|