NJ Obamacare Premiums Skyrocket in 2026

New Jersey’s ACA Marketplace Rates Set to Skyrocket by 174%

The Department of Banking and Insurance in New Jersey has announced that, beginning Nov. 1, health insurance premiums for the state’s Affordable Care Act (ACA) marketplace will drastically increase. This is due to the expiring federal subsidies and the current escalating cost of care. The department stated that consumers buying health insurance through New Jersey’s ACA market would witness a whopping 174% increase in premiums.

The hefty rise in premiums, coupled with increasing deductibles, is anticipated to compel numerous New Jersey residents to opt for less thorough plans or forgo health insurance entirely. Laura Waddell, health care program director for New Jersey Citizen Action, a consumer advocacy group, expressed her concern stating, “People are just not able to afford these increases.”

The Get Covered NJ marketplace, often referred to as Obamacare, caters primarily to those not covered by Medicare, Medicaid, or their employer. The marketplace is set to see sharp price hikes affecting over half a million New Jersey residents who receive health insurance through it.

The substantial rate increases come amid a backdrop of an almost month-long federal government shutdown due to budget conflicts. The Democrats have put forth that they will not agree to a compromise unless the budget accommodates the extension of tax credits for ACA insurance plans. The upcoming open enrollment period, running from Nov. 1 through Jan. 15, 2026, offers a chance to shop for new plans for the next year, but the uncertainty surrounding the shutdown adds to the tension.

Health insurance companies have raised rates by an average of 16.6% due to a combination of overall inflation, increased utilization, and a higher probability of younger, healthier consumers finding plans too expensive and opting out of the insurance pool. However, New Jersey residents who received tax credits will be in for a shock as these credits, included in the American Rescue Plan Act in 2021 and extended in the Inflation Reduction Act in 2022, are set to expire at the end of the year, leading to significantly higher out-of-pocket costs.

The Murphy administration credits these subsidies for a 108% rise in ACA enrollment in New Jersey since the state-operated exchange’s launch in 2019. However, without the tax credits, a 30-year-old with an AmeriHealth New Jersey silver plan, earning $50,000 annually, would see their monthly premium increase from $187.96 to $337.21, or 79%.

Similarly, a 45-year-old with a Horizon Omnia silver plan with a family of four, earning the state’s median income of $97,000, would witness their monthly premium skyrocket from $743.83 to $2,075.72, an increase of 179%. The plan’s deductible would also rise from $3,200 to $4,200.

The healthcare premium increases have now become a primary concern in the ongoing federal government shutdown, with lawmakers struggling to devise ways to protect ACA subsidies and keep the government running. As the clock ticks down, the ongoing negotiations continue to create uncertainty about the future of ACA tax credits and the health insurance landscape in New Jersey.