New Jersey residents will see Affordable Care Act premiums jump 20% on average for 2027 health insurance

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Residents in the Garden State will see double-digit premium increases this year, on average, when they shop for 2027 health insurance coverage on Get Covered New Jersey, the state's Affordable Care Act marketplace.

Premium prices will jump by an average of 20% statewide, according to final rates recently published by the New Jersey Department of Banking and Insurance. Roughly half a million residents purchase their health insurance on the marketplace, state data shows.

People will see the new costs reflected in individual health plans offered on the insurance exchange during annual open enrollment, which runs from Nov. 1 through Jan. 31.

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Most people — about 8 in 10 residents — will still qualify for some level of federal or state financial assistance, but New Jersey leaders said the increases come at a time when many residents are already struggling with the rising cost of living.

"These health insurance rate increases will place extraordinary pressure on household budgets and drive more New Jerseyans to make the heartbreaking choice to drop coverage altogether," acting insurance commissioner Susan Ochs said in a statement.

The exact amount any one person will pay for health insurance coverage varies by insurance company and individual plan. These are the average rate increases across all plans by insurance carrier:

* AmeriHealth Insurance Co.: 17%

* Horizon Blue Cross Blue Shield of NJ: 15.3%

* Oscar Garden State Insurance Corporation : 29.3%

* UnitedHealthcare Insurance Company : 35.7%

* Ambetter from WellCare of New Jersey: 20.8%

Insurance carriers cited rising medical and prescription drug costs as underlying reasons for the rate increases, according to state insurance officials. They also anticipate higher insurance payouts for a sicker population of enrollees going forward following the end of COVID-19 pandemic-era enhanced premium tax credits last year.

The boosted federal subsidies, passed in 2021, helped lower monthly premiums for more people, which led to historic insurance enrollment numbers. But Congress failed to renew the boosted tax credits last year.

Republicans had raised concerns about federal costs as well as fraud and eligibility requirements. Democrats argued that letting the subsidies expire would make health insurance unaffordable for millions of Americans.

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Since the tax credits expired, monthly premium costs swelled for many people across the country. Millions of people have dropped ACA health insurance coverage, according to a KFF analysis, and they tend to be younger and healthier. Meanwhile, those who have kept their health insurance are more likely to be sicker and have higher medical needs.

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