Federal Financial Assistance Reduces Health Insurance Premiums in NJ

Federal financial assistance that significantly reduced health insurance premiums for many middle-income residents in New Jersey during the pandemic is no longer available. Consequently, as reported by the administration of Governor Mikie Sherrill, consumers are now opting for lower coverage levels or choosing to forgo insurance altogether.

The state's health insurance exchange, GetCoveredNJ, has observed a reduction of 4,000 enrollees compared to 2025, with 509,192 people signing up by the end of the enrollment period on January 31. Acting Banking and Insurance Commissioner Susan Ochs has noted that the expiration of "grace periods" in March could result in further enrollment declines as individuals encounter higher premiums.

In response to rising costs, many consumers are choosing plans with less comprehensive coverage and higher deductibles. Data indicates a shift, with 68% of consumers selecting a silver plan, down from 83% in 2025, while the percentage opting for bronze plans has doubled to 31%.

“Unfortunately, we are already seeing the consequences of federal inaction to extend the enhanced premium tax credits,” said Ochs, emphasizing the current challenges for New Jersey residents. The proportion of consumers eligible for enough financial assistance to maintain premiums at $10 a month has dropped to 11%, from 48% the previous year. In contrast, those paying over $100 monthly increased to 224,894, up from 145,408 in 2025.

Although federal tax credits from the Affordable Care Act are still available for those earning up to 138% of the poverty level, benefits for households above this threshold are no longer accessible. Analysis by the Bipartisan Policy Center shows that a family of four slightly above the poverty level now faces annual premiums of $1,607.

New Jersey has reintroduced its subsidy program, NJ Health Plan Savings, although it provides less assistance than the previous federal supports. This initiative allocates $215 million for individuals earning up to 600% of the poverty level. Meanwhile, state mandates require residents to have health insurance, imposing penalties for non-compliance. Individuals previously covered by Aetna, which has exited the marketplace, must choose a new provider by the end of the month.

For more information or assistance, residents are encouraged to visit the GetCoveredNJ website for additional resources and support.