Nearly 69,000 New Jersey Residents Drop Marketplace Health Plans After Federal Subsidies Expire
Why It Matters
New Jersey is confronting a significant contraction in health insurance enrollment after enhanced federal premium tax credits expired, leaving tens of thousands of Garden State residents without coverage or forcing them into cheaper plans with higher out-of-pocket costs. The shift highlights the real-world consequences of allowing pandemic-era government subsidy programs to lapse — and raises broader questions about long-term dependence on temporary federal assistance.
What Happened
Nearly 69,000 New Jersey residents who enrolled in health plans through Get Covered New Jersey, the state’s health insurance marketplace, have since canceled their coverage following the expiration of enhanced premium tax credits, according to the state Department of Banking and Insurance. Enrollment on the marketplace closed on January 31, and the department confirmed 68,830 cancellations — a 14% decline in total enrollment — since that date.
Beyond outright cancellations, many enrollees who kept their coverage downgraded to lower-tier plans with higher deductibles and cost-sharing requirements. Officials announced the figures on Tuesday, April 22.
The enhanced subsidies, which were first introduced during the pandemic, were not renewed by congressional Republicans or the Trump administration. Democrats sought an extension, but the two sides failed to reach agreement. Acting Banking and Insurance Commissioner Susan Ochs commented on the enrollment drop in a public statement, saying residents “will now be at risk of forgoing important preventative care and left to rely on costly emergency services that they may not be able to afford.”
Governor Mikie Sherrill also issued a statement attributing rising insurance costs to federal decisions, saying “Washington has chosen to drive up health insurance prices.”
By the Numbers
68,830 — New Jersey marketplace enrollees who have canceled their health plans since January 31, representing a 14% decline in total enrollment.
440,362 — New Jerseyans who remained enrolled in exchange-traded plans as of April 15, 2026, according to the department.
Before the subsidies expired, 48% of enrollees receiving financial assistance paid less than $10 per month for coverage. That figure has fallen to just 11% in the current plan year.
The share of enrollees in silver-level plans dropped from 83% in 2025 to 68% this year. Bronze plan enrollment — the lowest tier — nearly doubled, rising to 31% of total enrollment.
Permanent Affordable Care Act tax credits remain available for households earning up to 400% of the federal poverty line: $62,600 for an individual or $128,600 for a family of four in 2026. New Jersey’s own state subsidies extend to households earning up to 600% of the federal poverty line — $93,900 for an individual or $192,900 for a four-person household.
Zoom Out
The enrollment drop in New Jersey reflects a national pattern playing out across states that rely heavily on Affordable Care Act marketplace plans. The enhanced subsidies — first authorized during the COVID-19 pandemic — dramatically expanded coverage by reducing monthly premiums to near zero for lower-income enrollees. Their expiration has prompted coverage losses and plan downgrades in numerous states, reigniting a national debate over the sustainability of government-subsidized insurance markets.
Critics of the subsidy structure argue that enrollment figures built on temporary, expanded federal assistance were never a reliable benchmark for sustainable coverage, and that long-term dependence on inflated federal support distorts the insurance market. A recent report already flagged looming Medicaid cuts and fiscal pressures on New Jersey children’s health outcomes, adding further urgency to the state’s health coverage challenges.
Congress continues to debate whether to restore or restructure the enhanced tax credits as part of broader fiscal negotiations, though no agreement has been reached.
What’s Next
State officials have not announced emergency measures to replace the expired federal subsidies, though New Jersey’s existing state-level subsidy program — which covers households up to 600% of the federal poverty line — remains in place. New Jersey’s recently launched budget transparency portal may offer residents and lawmakers clearer insight into how state health spending is allocated going forward.
Congressional action on a longer-term subsidy extension or replacement remains the most consequential next step. Without federal action, enrollees who downgraded coverage or dropped plans entirely are unlikely to return to higher-tier plans mid-year. The next open enrollment period on Get Covered New Jersey will determine whether the drop in coverage becomes a lasting trend.