Sources: Minimum wage proposal would force N.J. to increase Medicaid reimbursement by $200M

The $15 minimum wage legislation introduced Thursday by Assembly Speaker Craig Coughlin is already creating a stir. The strategy for home health aides and those who care for the elderly, who are typically reimbursed by Medicaid, is also of interest.

Multiple sources told ROI-NJ on Thursday that the proposed bill would increase the Medicaid spend in the fiscal 2020 budget.

One source said that number would be an increase of $200 million to reach the $15 wage.

This is not news to Gov. Phil Murphy’s administration. Another source told ROI-NJ the increased Medicaid budget, which includes a 50 percent match from the federal government, already has been discussed with the administration.

The bill from Coughlin (D-Woodbridge) calls for the expected raise from $8.60 to $8.85 per hour to occur in January, followed by an increase for the non-carveout workers to $9.55 on July 1.

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