{"id":5952,"date":"2026-07-14T14:12:44","date_gmt":"2026-07-14T09:12:44","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=5952"},"modified":"2026-07-14T14:12:44","modified_gmt":"2026-07-14T09:12:44","slug":"facing-funding-losses-states-call-out-big-businesses-with-employees-on-medicaid","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=5952","title":{"rendered":"Facing funding losses, states call out big businesses with employees on Medicaid"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>As the Trump administration&#8217;s January deadline looms for states to enforce a new <a href=\"https:\/\/www.cbsnews.com\/news\/medicaid-work-rules-states-staffing\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">Medicaid work requirement<\/a>, some state lawmakers are turning the tables by pushing to publicly name the largest companies that have employees enrolled in the government program covering low-income and disabled people.<\/p>\n<p>California lawmakers <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billTextClient.xhtml?bill_id=202520260SB1284&amp;ct=1780431339686\" target=\"_blank\" rel=\"noopener\">seek to revive<\/a> an expired law that would require the state to identify companies that employ 100 or more people and have employees enrolled in Medi-Cal, the state&#8217;s Medicaid program. Nevada has had a similar law in place since 2017, though a proposal for one in Oregon stalled when its legislative session ended in March.<\/p>\n<p>The California bill author, Democratic state Sen. Lola Smallwood-Cuevas, said she is deeply troubled by what is going to happen when work requirements kick in. According to the state, <a href=\"https:\/\/www.chcf.org\/resource\/hr1-work-requirement-affect-californians-medi-cal-policy-at-a-glance\/\" target=\"_blank\" rel=\"noopener\">nearly 5 million<\/a> out of more than <a href=\"https:\/\/www.dhcs.ca.gov\/wp-content\/uploads\/2026\/05\/Medi-Cal-Fast-Facts-April-2026.pdf\" target=\"_blank\" rel=\"noopener\">14 million residents<\/a> on Medi-Cal will be subject to the requirement.<\/p>\n<p>&#8220;We think this is a bill that&#8217;s about fairness,&#8221; Smallwood-Cuevas said. &#8220;It&#8217;s a basic principle that taxpayers deserve transparency about which large employers are shifting their healthcare costs onto the public.&#8221;<\/p>\n<figure class=\"embed embed--type-image is-image embed--float-none embed--size-medium\">\n<p>      <span class=\"img embed__content \"><img decoding=\"async\" src=\"https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2026\/07\/13\/1a180f72-e9dc-4772-8e50-fd98270ae60a\/thumbnail\/620x414\/fcb3426f5ad95490da8e4601ab414d0e\/gettyimages-1249746640.jpg#\" alt=\"Lawmakers honor Womens History Month \" height=\"414\" width=\"620\" class=\" lazyload\" srcset=\"https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2026\/07\/13\/1a180f72-e9dc-4772-8e50-fd98270ae60a\/thumbnail\/620x414\/fcb3426f5ad95490da8e4601ab414d0e\/gettyimages-1249746640.jpg 1x, https:\/\/assets3.cbsnewsstatic.com\/hub\/i\/r\/2026\/07\/13\/1a180f72-e9dc-4772-8e50-fd98270ae60a\/thumbnail\/1240x828\/33ceedd3d7db63ae681d728e1df410bb\/gettyimages-1249746640.jpg 2x\" loading=\"lazy\"\/><\/span><figcaption class=\"embed__caption-container\">\n<p>                  <span class=\"embed__caption\">California state Sen. Lola Smallwood-Cuevas wants the state to identify companies that employ 100 or more people and have employees enrolled in Medi-Cal.<\/span><\/p>\n<p>                  <span class=\"embed__credit\"><\/p>\n<p>                Jason Armond \/ Los Angeles Times via Getty Images<\/p>\n<p>                          <\/span><br \/>\n              <\/figcaption><\/figure>\n<p>Large employers that regularly top Nevada&#8217;s list, such as Walmart and Amazon, have said that the state included part-time and seasonal workers in their counts and that their full-time hourly employees <a href=\"https:\/\/thenevadaindependent.com\/article\/amazon-tops-list-of-companies-tapping-into-taxpayer-funded-nevada-medicaid\" target=\"_blank\" rel=\"noopener\">make too much<\/a> to qualify for Medicaid.<\/p>\n<p>Walmart spokesperson Katrina Proffitt said that the company offers affordable medical coverage to most employees, including eligible part-time workers, and that most of its plans include no-cost virtual care options.<\/p>\n<p>&#8220;Healthcare affordability and access to quality care remain real barriers for many Americans, and Walmart continues to be committed to being part of the solution,&#8221; Proffitt said.<\/p>\n<p>The push to name and shame companies reflects dueling narratives about the biggest abusers of the joint state-federal Medicaid program, which reached nearly <a href=\"https:\/\/www.cms.gov\/data-research\/statistics-trends-and-reports\/national-health-expenditure-data\/nhe-fact-sheet\" target=\"_blank\" rel=\"noopener\">$932 billion<\/a> in government spending in 2024. The Trump administration, led by Centers for Medicare &amp; Medicaid Services Administrator <a href=\"https:\/\/www.cbsnews.com\/news\/dr-oz-pledges-to-tackle-hospice-fraud\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">Mehmet Oz<\/a>, has called out blue states for not doing enough to fight insurer <a href=\"https:\/\/kffhealthnews.org\/health-industry\/hospice-fraud-medicaid-mehmet-oz-cms-california\/\" target=\"_blank\" rel=\"noopener\">fraud and abuse<\/a>. State Democratic leaders, meanwhile, are pushing back by calling attention to big employers that don&#8217;t offer affordable health benefits, which leaves taxpayers subsidizing healthcare costs for the low-wage workforce.<\/p>\n<p>Some states have considered financial penalties. Democratic New Jersey Gov. Mikie Sherrill signed a bill in June <a href=\"https:\/\/newjerseymonitor.com\/briefs\/nj-legislature-bill-employers-workers-medicaid\/\" target=\"_blank\" rel=\"noopener\">to fine businesses<\/a> that have at least 50 Medicaid-enrolled employees. Companies with 50 to 249 workers on Medicaid <a href=\"https:\/\/apnews.com\/article\/medicaid-employers-states-taxes-04356a421cb832340acc8f179ecc1d79\" target=\"_blank\" rel=\"noopener\">will pay $325 a year<\/a> per person, and those with at least 500 will pay $725.\u00a0<\/p>\n<p>Bills that would have penalized companies with workers enrolled in Medicaid failed in <a href=\"https:\/\/washingtonstatestandard.com\/2026\/02\/23\/wa-democrats-drop-push-for-business-tax-to-cover-medicaid-costs\/\" target=\"_blank\" rel=\"noopener\">Washington state<\/a> <a href=\"https:\/\/coloradonewsline.com\/briefs\/large-employers-medicaid-fee\/\" target=\"_blank\" rel=\"noopener\">and Colorado<\/a> this year.<\/p>\n<p>In Sacramento, California, Democrats want to figure out a way to make large businesses pay for their employees&#8217; health coverage. State lawmakers struck a deal with Democratic Gov. Gavin Newsom, who is contemplating a presidential bid as he wraps up his final year in the governor&#8217;s office, to explore tax options. Any tax hike would be up to the new governor.<\/p>\n<p>States face <a href=\"https:\/\/www.commonwealthfund.org\/blog\/2025\/states-responses-hr-1-cuts-medicaid-funding\" target=\"_blank\" rel=\"noopener\">losing billions<\/a> of dollars under HR 1, the GOP tax-and-spending law known as the <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/trump-one-big-beautiful-bill-obbba-winners-losers-one-year-later\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">One Big Beautiful Bill Act<\/a><\/span>, notably through <a href=\"https:\/\/www.kff.org\/medicaid\/medicaid-work-requirements-tracker-overview\/\" target=\"_blank\" rel=\"noopener\">a provision<\/a> that requires nondisabled Medicaid enrollees ages 19 to 64 in most states to prove they are working, volunteering, or going to school at least 80 hours a month to keep their coverage.<\/p>\n<p>Yet federal work requirements are projected to increase the number of uninsured people nationwide by more than 5 million by 2034, according to the <a href=\"https:\/\/www.kff.org\/medicaid\/medicaid-work-requirements-tracker-overview\/\" target=\"_blank\" rel=\"noopener\">Congressional Budget Office<\/a>. Nebraska and Montana <a href=\"https:\/\/kffhealthnews.org\/medicaid\/nebraska-medicaid-work-requirement-fears-losing-coverage\/\" target=\"_blank\" rel=\"noopener\">have begun enforcing the rule<\/a>.<\/p>\n<p>One health policy researcher said employer Medicaid reports highlight the lack of affordable healthcare options available to low-wage workers. More than half of adults enrolled in Medicaid who don&#8217;t have dependent children already meet the 80-hour-a-month requirement or face challenges that would likely qualify them for an exemption, <a href=\"https:\/\/www.kff.org\/medicaid\/medicaid-work-requirements-tracker-overview\/\" target=\"_blank\" rel=\"noopener\">according to KFF<\/a>.<\/p>\n<p>&#8220;There&#8217;s a whole set of people who are working \u2014 they may not satisfy the work requirement provisions, they may not get the exemption that they&#8217;re qualified for, and they don&#8217;t have access to that employer-sponsored insurance either,&#8221; said Edwin Park, a research professor at the Center for Children and Families at Georgetown University.<\/p>\n<h2>Employers push back<\/h2>\n<p>While employer lists haven&#8217;t succeeded in bringing down Medicaid costs, supporters say measuring the burden can be the first step and help lawmakers make the case for further action.<\/p>\n<p>In Nevada, Amazon has employed more Medicaid enrollees than any other company since 2020, according to the state&#8217;s report <a href=\"https:\/\/www.leg.state.nv.us\/Division\/Research\/Documents\/RTTL_NRS422.27482_2025.pdf\" target=\"_blank\" rel=\"noopener\">published in January<\/a>. For state fiscal year 2025, Walmart, the Clark County School District, the state government, and Tesla rounded out the top five.<\/p>\n<p>Employers <a href=\"https:\/\/thenevadaindependent.com\/article\/amazon-surpasses-walmart-for-most-nevada-employees-and-dependents-on-medicaid\" target=\"_blank\" rel=\"noopener\">have argued<\/a> that the reports are misleading because they have included part-time and seasonal employees. The state&#8217;s <a href=\"https:\/\/www.leg.state.nv.us\/Division\/Research\/Documents\/RTTL_NRS422.27482_2025.pdf?ct=1782318082750\" target=\"_blank\" rel=\"noopener\">latest report<\/a> includes only full-time employees, plus those who could not be confirmed as either full- or part-time employees.<\/p>\n<p>That came to 4,914 Amazon employees and 3,503 Walmart workers in Nevada on Medicaid in 2025.<\/p>\n<p>There are no penalties for companies on the list.<\/p>\n<p>Amazon said it pays its workers more than double the $7.25-an-hour federal minimum wage and noted that Medicaid eligibility is based on household income and size rather than an individual&#8217;s wage. That means two employees who earn the same pay may have different eligibility depending on whether they have children or live with parents.<\/p>\n<p>&#8220;Pointing fingers at Amazon over Medicaid is a red herring,&#8221; said spokesperson Alisa Carroll. &#8220;What really needs to happen is a significant and large increase in the federal minimum wage \u2014 that would be a big boost for American families.&#8221;<\/p>\n<p>Nevada Medicaid spent nearly $950 million on healthcare for more than 133,000 full-time employees and more than 140,000 of their dependents. While the total amount spent dipped in fiscal year 2025, the average cost per member per year increased by nearly 17%.<\/p>\n<p>Yvanna Cancela, a former Nevada lawmaker who sponsored the legislation on Medicaid work reports, said the annual reports force an important conversation &#8220;about whether or not this is the kind of economy we want and whether or not it is right or just that people who work full-time don&#8217;t make enough to have health insurance.&#8221;<\/p>\n<h2>A fraying safety net<\/h2>\n<p>Health researchers say that uninsured people delay or skip <a href=\"https:\/\/www.kff.org\/uninsured\/key-facts-about-the-uninsured-population\/?entry=executive-summary-key-takeaways\" target=\"_blank\" rel=\"noopener\">using healthcare<\/a> and that their children may end up losing coverage, too.<\/p>\n<p>One analysis found that more than <a href=\"https:\/\/ccf.georgetown.edu\/2026\/05\/28\/two-million-fewer-children-are-enrolled-in-medicaid-since-trump-took-office\/\" target=\"_blank\" rel=\"noopener\">2 million fewer children<\/a> were enrolled in Medicaid and the Children&#8217;s Health Insurance Program this April than in January 2025. California is among the states with the <a href=\"https:\/\/ccf.georgetown.edu\/2026\/06\/10\/which-states-are-seeing-the-largest-declines-in-child-medicaid-chip-enrollment\/\" target=\"_blank\" rel=\"noopener\">steepest enrollment losses<\/a> among children.<\/p>\n<p>The loss in healthcare coverage among residents will be compounded by the loss of public food assistance benefits, Smallwood-Cuevas said. <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billTextClient.xhtml?bill_id=202520260SB1284\" target=\"_blank\" rel=\"noopener\">Her bill<\/a> is pending in the legislature.<\/p>\n<p>She compared Medi-Cal to a trampoline that has become a &#8220;very tattered kind of fishnet&#8221; overwhelmed by people falling into it. President Trump&#8217;s spending-and-tax law pulls and rips at the safety net, she said.<\/p>\n<p>When people lose food assistance and health benefits, they must choose between paying for medicine and paying for rent, Smallwood-Cuevas said.<\/p>\n<p>&#8220;We&#8217;re going to see more people in their cars, more people on the street, and a lot more people in the emergency room,&#8221; she said. &#8220;That is dangerous for all of California.&#8221;<\/p>\n<p><a href=\"https:\/\/kffhealthnews.org\/about-us\" target=\"_blank\" rel=\"noopener\"><em>KFF Health News<\/em><\/a><em> is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at <\/em><a href=\"https:\/\/www.kff.org\/about-us\/\" target=\"_blank\" rel=\"noopener\"><em>KFF<\/em><\/a><em> \u2014 the independent source for health policy research, polling, and journalism.<\/em><\/p>\n<section class=\"content__body--footer\">\n<\/section>\n<p>  <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation  \">\n        <\/aside>\n<section class=\"content__body--footer\">\n      <!-- tags --><\/p>\n<section class=\"content__tags\">\n<p class=\"content__tags__label\">In:<\/p>\n<\/section>\n<\/section><\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>As the Trump administration&#8217;s January deadline looms for states to enforce a new Medicaid work requirement, some state lawmakers are turning the tables by pushing to publicly name the largest companies that have employees enrolled in the government program covering low-income and disabled people. California lawmakers seek to revive an expired law that would require&#8230;<\/p>\n","protected":false},"author":1,"featured_media":5953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2026\/07\/13\/1a180f72-e9dc-4772-8e50-fd98270ae60a\/thumbnail\/1200x630\/b9e365ddb6a2a1abc4b0f88819c00b70\/gettyimages-1249746640.jpg","fifu_image_alt":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-5952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pics-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/5952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5952"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/5952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/5953"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}