Health insurance premiums on New Jersey’s exchange are projected to surge by nearly 175%, significantly increasing costs for residents

 

New Jerseyans who purchase health insurance through the state’s exchange will see an average increase of nearly 175 percent in their premiums next year, the Murphy administration announced Monday.

The state’s Department of Banking and Insurance said the sticker shock is attributed to the expiration of enhanced federal health insurance subsidies — which have been the key sticking point of the federal government shutdown. Congressional Democrats want to tie reopening the government to extending the subsidies, while Republicans want to address the issues separately. Democrats put the enhanced subsidies in place under the Biden administration.

For the 2025 plan year, just over 500,000 New Jerseyans had health insurance through the state exchange, known as Get Covered New Jersey. An estimated 60,000 New Jerseyans will outright lose federal assistance if the enhanced subsidies expire as planned, the banking and insurance department said.

“For the upcoming plan year, it is essential for all consumers to carefully shop and compare health plans to secure coverage that best meets their needs and budgets,” DOBI Commissioner Justin Zimmerman said in a statement. “Continued Congressional inaction on extending the enhanced premium tax credits will result in higher insurance costs for New Jersey residents who count on Get Covered New Jersey for health coverage for themselves and their families.”

The Democratic administration of Gov. Phil Murphy has pushed members of the New Jersey congressional delegation to support an extension of the health insurance subsidies. In May, it estimated that the expiration of the subsidies would result in New Jerseyans facing a 110 percent increase in health insurance costs.

How much New Jerseyans will pay will depend on their income and what part of the state they live in. On average, the increased health care costs will amount to another $2,780 annually, the Murphy administration said.

The state of New Jersey provides some subsidies for health plans, known as the New Jersey Health Plan Savings. That, however, pales in comparison to the expiring federal subsidy. The state subsidy is valued at around $215 million while the expiring enhanced subsidy is $500 million, according to state budget documents.

Some congressional Republicans are pushing to renew the enhanced health insurance subsidies, arguing that not doing so will turn away voters who have become part of the GOP base. Rep. Jeff Van Drew (R-N.J.) recently said he spoke with President Donald Trump on a one-year extension for the enhanced subsidies.

In Trenton, Democrats have said that they cannot backfill cuts from the federal government. Spokespeople for state Assembly Senate Democrats declined to comment.