Health Care

California joins push to charge big employers for workers’ Medicaid use

The idea regained momentum after the Big Beautiful Bill made cuts to the healthcare program.
California Gov. Gavin Newsom speaks about his state budget proposal Thursday, May 14, 2026, in Sacramento, Calif. (AP Photo/Jeff Chiu)

California added momentum this week to a progressive push to require employers with high numbers of low-wage workers to pay extra fees to account for their employees’ reliance on the state Medicaid program.

The Fair Share from Big Corporations Act, which Democratic Gov. Gavin Newsom signed Thursday, directs state officials to study a proposed premium payment for employers with at least 250 employees to offset the taxpayer costs of their employees enrolled in Medi-Cal who are not offered employer-sponsored health coverage. 

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