Business Groups Sue New Jersey Over Employer Fines for Workers on Medicaid

Business organizations have filed suit challenging a New Jersey law that imposes fines on large employers whose workers are enrolled in Medicaid. The plaintiffs argue the statute violates federal privacy laws by requiring employers to inquire about workers' health insurance status. The lawsuit seeks to void the law before it takes effect. The case could affect state efforts to shift Medicaid costs to employers and has implications for how states structure employer responsibility provisions in health coverage programs.