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New Jersey is set to charge companies with workers on Medicaid. Other states may follow
By Geoff Mulvihill, Associated Press at KSAT 12 (ABC affiliate)
· July 2, 2026
· 5 min read
New Jersey is launching a new fee on companies whose workers have Medicaid health coverage instead of being covered by their employers. Other states are considering it, too.Democratic lawmakers and governors see it as a way to help pay for the joint federal and state insurance program that covers...
Key takeaway Mikie Sherrill signed a measure Tuesday night to charge employers that have at least 50 workers covered by Medicaid, and the state budget she approved earlier in the week counts on raising $145 million this year from the program.
Why this matters in The San Antonio
San Antonio 's business community should take note of New Jersey's new fee on companies with workers on Medicaid, as this concept may soon be considered in Texas. The move to charge employers for each employee and dependent receiving Medicaid could have significant implications for local companies, particularly those with a large number of low-income workers. With Texas having one of the highest rates of uninsured residents in the country, any changes to Medicaid funding or eligibility could have a ripple effect on the state's healthcare system. As Democratic-led states like California explore similar measures, it's likely that Texas lawmakers will also be discussing potential solutions to address the looming Medicaid funding gap. San Antonio's city government and business leaders should be prepared to weigh in on this issue, considering the potential impact on local employers and the city's most vulnerable residents.
About this story
Original reporting by KSAT 12 (ABC affiliate) . The San Antonio surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSAT 12 (ABC affiliate) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 2, 2026 ·
Source: KSAT 12 (ABC affiliate) ·
Reading time: 5 min
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Frequently asked about this story
What is this story about? New Jersey is launching a new fee on companies whose workers have Medicaid health coverage instead of being covered by their employers. Other states are considering it, too.Democratic lawmakers and governors see it as a way to help pay for the joint federal and state insurance program that covers...
When was this published? This article was first published on July 2, 2026 by KSAT 12 (ABC affiliate) and curated for The San Antonio readers.
Who reported this story? This story was reported by Geoff Mulvihill, Associated Press at KSAT 12 (ABC affiliate). To learn more about how The San Antonio selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The San Antonio, or browse our daily briefing and topic hubs .
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