New JerseyA5324221st Legislature (2026-2027)HouseWALLET

Establishes fee on certain employers that employ individuals who receive health benefits coverage through State Medicaid program.

Sponsored By: Rosaura Bagolie (Democratic), Carol A. Murphy (Democratic), Joseph F. Vitale (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Job and privacy protections for Medicaid recipients

Beginning July 1, 2026, New Jersey employers cannot use your Medicaid coverage to deny hiring, continued employment, or promotion. You can enforce this protection under New Jersey’s Law Against Discrimination. Identifiable Medicaid information about employees and dependents in records used to carry out this law is confidential. State officials may use or share it only as needed for official duties. This information is exempt from release under New Jersey’s public records law.

New employer fees with worker exemptions

Beginning July 1, 2026, employers with at least 50 Medicaid-covered employees during the prior calendar year owe annual fees. The fees help cover New Jersey’s Medicaid costs. The December 31 covered-employee count sets the rate for each eligible Medicaid-covered employee and dependent. Rates are $325 for 50–249 covered employees, $525 for 250–499, and $725 for 500 or more. Covered dependents include spouses, civil union partners, domestic partners, children under 31, and older children unable to support themselves. Employees and dependents with qualifying developmental, intellectual, or permanent physical disabilities are exempt. Beginning July 1, 2027, exclusions also cover employees employed less than 90 days, plus part-time, per-diem, temporary, and seasonal employees. Employers must prove eligibility for credits or refunds, including qualifying fees paid before July 1, 2027. Credits or refunds apply in the following year. Independent contractors are excluded, but employers must prove that classification under the state’s legal test. Treasury’s revenue division sends notices by March 1; electronic payment is due April 15. Unpaid fees can bring penalties of up to $500 per day. Employers can appeal to the labor department but must pay while the appeal is pending. A reversed assessment requires a fee refund, but monetary penalties remain nonrefundable. Employers must allow record audits and can face existing misclassification penalties for wrongly classifying workers to avoid fees. State rules set how many days of Medicaid coverage trigger the fee and explain the appeals process.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 68 • No: 37

Senate vote • 6/30/2026

3RDG FINAL PASSAGE

Yes: 22 • No: 15

House vote • 6/30/2026

3RDG FINAL PASSAGE

Yes: 46 • No: 22

Actions Timeline

Governor: APP
6/30/2026Governor
Approved by Governor — P.L.2026, c.23.
6/30/2026Governor
Passed Senate, PBH — (22-15)
6/30/2026Senate
Substituted for S4533 (1R)
6/30/2026Senate
Received in Senate, SWR, 2nd Reading in Senate
6/30/2026Senate
Passed Assembly — (46-22-0)
6/30/2026House
REP/ACA, 2nd Reading in Assembly
6/28/2026House
Introduced, 1st Reading in Assembly, Referred to Assembly Budget Committee
6/23/2026House

Bill Text

Version PL2026
9/17/2026
HTML PDF
Version AL2026
8/13/2026
HTML PDF
7/6/26; 1R
7/6/2026
HTML PDF
Assembly Budget (6/28/26 1R)
6/30/2026
HTML PDF
Assembly Budget Substitute (6/28/26)
6/29/2026
HTML PDF
As Introduced
6/26/2026
HTML PDF

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