Chris Emigholz, chief government affairs officer of the New Jersey Business and Industry Association, discussed the employer Medicaid tax proposal in Governor Mikie Sherrill’s $60.7 billion budget plan during an April 6 episode of the IssuesWatch podcast.
The discussion is important because it addresses how proposed changes could impact businesses across New Jersey, especially those that already offer health benefits to employees. The policy would introduce a penalty for businesses with 50 or more workers receiving Medicaid benefits, even if those employers provide healthcare options.
“I do think this is the most anti-business part of the state budget that was proposed,” Emigholz said to Jeff Kaszerman, vice president of government affairs at the New Jersey CPA Society and host of IssuesWatch. He explained that some employers may be penalized despite offering health coverage if their employees choose not to enroll or do not qualify due to work hours. “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 opt for Medicaid over private insurance due to lower co-pays or broader coverage for services like home- and community-based care. He raised concerns about penalties affecting companies who hire individuals with developmental disabilities: “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,” he said. “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 organization advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka leads as president and chief executive officer according to its official website.
Serving private-sector employers throughout New Jersey according to its official website, NJBIA facilitates partnerships among businesses, government entities, and academic institutions according to its official website. It also offers advocacy efforts along with practical information and cost-saving programs designed for business prosperity according to its official website.
To hear more details from Emigholz about these proposals in Governor Sherrill’s budget plan, listeners can access the full IssuesWatch podcast episode.
