August 17, 2026

New Jersey Imposes Fees on Larger Employers with Employees on Medicaid

Starting in 2027, New Jersey will charge annual fees to employers that employ 50 or more employees who receive health benefits coverage through the State Medicaid program.  Here is a summary of the new law:

• The State will issue bills to employers on or about March 1, 2027, and payment will be due April 15, 2027.  The bill will include a fee for each employee and employee’s dependent who is on Medicaid. 
  
  
• Fees will range from $325 to $725 per person depending on the size of the employer. 
  
  
• Failure to pay the bill could result in penalties of up to $500 per day for each day the fees are due.
  
  
• The State will not assess fees for employees and their dependents who are on Medicaid and have a developmental disability, intellectual disability, or a permanent physical disability. 
  
  
• As of July 1, 2027, the State will not assess fees for newly hired, part-time, per diem, temporary, or seasonal employees, and employers may receive a credit or rebate if they paid fees for those employees in 2027. 
  
  
• Employers may not discriminate against applicants or employees in employment based on Medicaid status.
  

New Jersey has not yet issued regulations or guidance regarding this law.

If you have questions about this law or about employer obligations under New Jersey or New York employment laws, please contact any Book Law attorney or Sheryl Galler at sgaller@booklawllp.com.