local
New Jersey is set to charge companies with workers on Medicaid. Other states may follow
By Geoff Mulvihill, Associated Press at KPRC 2 / Click2Houston (NBC)
· 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 Pearland
As Texas watches other states like New Jersey and California consider charging companies for workers on Medicaid, Pearland residents should be aware of the potential implications for local businesses and employees. With many large companies operating in the Houston area, including Pearland, a similar fee could significantly impact the local economy. The fact that New Jersey is expecting to raise $145 million from this program suggests that Texas could also generate substantial revenue if it were to adopt a similar approach. However, the opposition from business groups and some liberal policy organizations indicates that this would be a contentious issue in the Texas legislature. As federal Medicaid changes are expected to increase costs for states, Texas lawmakers may be tempted to explore this option to offset the expenses, making it crucial for Pearland residents to stay informed about potential developments in this area.
About this story
Original reporting by KPRC 2 / Click2Houston (NBC) . The Pearland 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 KPRC 2 / Click2Houston (NBC) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 2, 2026 ·
Source: KPRC 2 / Click2Houston (NBC) ·
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 KPRC 2 / Click2Houston (NBC) and curated for The Pearland readers.
Who reported this story? This story was reported by Geoff Mulvihill, Associated Press at KPRC 2 / Click2Houston (NBC). To learn more about how The Pearland selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Pearland, or browse our daily briefing and topic hubs .
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