CVS, Walmart among companies facing RI Medicaid tax

March 19, 2019

PROVIDENCE, R.I. (AP) — Many of Rhode Island’s top employers would be subjected to a proposed tax on large companies whose employees use Medicaid.

The Providence Journal reports that data from the Executive Office of Health and Human Services shows nearly 200 employers have 50 or more workers enrolled in Medicaid, and 10 employers have more than 300 workers enrolled.

Corporate names on the list with more than 300 workers enrolled include pharmacy chain CVS, Walmart and school bus company First Student.

Employers with 50 to 300 workers on Medicaid include five public school systems, most major colleges and hospitals.

The report estimates the state cost of insuring workers on the list is $44.4 million per year.

Gov. Gina Raimondo is proposing a 10 percent tax, up to $1,500 per worker, on the wages of enrolled employees.