As Federal Aid Ends, Thousands of New Jersey Residents Scale Back or Drop Health Coverage

The termination of COVID-19-era federal premium tax subsidies has thousands of New Jersey residents evaluating their health insurance choices this year. State officials claim the loss of that additional financial aid has already reduced enrollment and changed people’s coverage choices through GetCoveredNJ.

According to Gov. Mikie Sherrill’s administration, 4,000 fewer people signed up for state marketplace health insurance than last year. Before Jan. 31, 509,192 residents enrolled, down from 2025 levels when enrollment had risen.

State leaders warn the situation may worsen in weeks. Acting Commissioner of the New Jersey Department of Banking and Insurance Susan Ochs said thousands more residents might lose coverage in March when payment grace periods expire. Since enhanced federal support ended, many consumers now pay higher monthly costs.

Middle-income households saved a lot during the pandemic thanks to Affordable Care Act premium tax credits. Families often had cheap monthly premiums. Only the original subsidies for low-income individuals remain after that interim enlargement.

State data show a dramatic decline in residents receiving strong financial support. This year, 11% of marketplace consumers pay $10 monthly premiums, down from 48% last year. The number of people paying over $100 per month has increased from 145,408 in 2025 to 224,894.

As insurance premiums grow, many families are modifying coverage rather than canceling it. More residents are choosing cheaper policies with higher deductibles and less features. This year, 68% of consumers chose mid-level silver plans, down from 83% last year. Bronze plan enrollment, which has higher out-of-pocket payments, nearly jumped from 16% last year to 31% this year.

State officials attribute the shift to federal policy changes. Because enhanced federal premium tax credits were not extended, Ochs said tens of thousands of residents must make health security decisions.

The effect is greatest among middle-income households. Tax credits under the Affordable Care Act remain apply to low-income people up to 138% of the federal poverty line. That includes single adults making $21,597 and four-person families earning $44,367. However, somewhat higher-income families are seeing substantial rises.

State officials cite an analysis showing that a $45,000 family of four paid no monthly premiums under the enlarged program last year. The same family might pay $1,607 in premiums this year.

Recent years saw increased marketplace enrollment in New Jersey. Due to considerable federal pandemic aid, participation increased from 287,000 in 2021 to over 513,000 in 2025. Without additional credits, enrollment growth has slowed and reversed.

New Jersey offers NJ Health Plan Savings to lower costs. However, state officials admit it is less generous than the federal pandemic program. New Jersey received $500 million in federal subsidies last year to lower rates. The $215 million state program covers people earning up to 600% of the federal poverty level, or $93,900 for a single person and $192,900 for a family of four.

New Jersey citizens must have health insurance or pay a tax penalty. Officials advise residents with higher premiums to research state marketplace options before canceling coverage.

Customers insured by Aetna, which left the state market this year, are also transitioning. Those affected must choose a new carrier by the end of the month to prevent coverage gaps.

State officials stress that qualified people can still get help. Residents shopping for coverage can get free guidance from certified brokers and marketplace assisters.

The enrollment shift reflects state-wide financial strain on middle-income households. While low-income residents continue to receive Affordable Care Act subsidies, many households just beyond the eligibility line are paying far more. The expiration of temporary pandemic help has raised monthly insurance costs for thousands of New Jerseyans, forcing them to choose between protection and affordability.