Why It Matters
The lapse of federal premium tax credits has triggered a mass exodus from New Jersey’s health insurance marketplace, with nearly 69,000 residents canceling coverage in the first months of 2026. State officials warn the loss of subsidies will push uninsured residents toward emergency rooms and away from preventative care, driving up costs across the healthcare system.
What Happened
Enrollment on Get Covered New Jersey, the state’s health insurance marketplace, closed on January 31. Since then, 68,830 enrollees have canceled their plans, representing a 14% decline in marketplace participation, according to the state Department of Banking and Insurance.
The cancellations follow the expiration of pandemic-era enhanced premium tax credits that made exchange-traded health plans affordable for many households. Congressional Republicans and the Trump administration declined to extend the subsidies, leading to an impasse with Democrats that contributed to what became the longest full federal government shutdown in U.S. history.
Acting Banking and Insurance Commissioner Susan Ochs said the state is witnessing the consequences of the federal government’s decision not to extend the enhanced credits. Thousands of individuals and families now face the choice of forgoing preventative care or relying on costly emergency services.
By the Numbers
Before the subsidies expired, 48% of enrollees who received financial assistance paid less than $10 per month for coverage. In the current plan year, only 11% pay that little.
Among the 440,362 residents enrolled in New Jersey exchange-traded plans as of April 15, many downgraded to cheaper plans with higher out-of-pocket costs. The share of individuals enrolled in silver-level plans dropped to 68% this year from 83% in 2025. Enrollment in bronze plans nearly doubled to 31%.
Permanent tax credits passed under the Patient Protection and Affordable Care Act remain available for taxpayers with household incomes not exceeding 400% of the federal poverty line — $62,600 for an individual or $128,600 for a family of four in 2026.
New Jersey offers additional state subsidies for households with incomes up to 600% of the federal poverty line, or $93,900 for an individual and $192,900 for a four-person household in 2026.
Zoom Out
The New Jersey enrollment decline reflects a broader national trend as states grapple with the end of enhanced federal subsidies. The expanded credits, enacted during the pandemic, temporarily made marketplace plans more affordable for millions of Americans, including many middle-income households previously ineligible for assistance.
Other states with their own marketplaces have reported similar drops in enrollment and shifts toward lower-tier plans with reduced benefits and higher deductibles.
What’s Next
Governor Mikie Sherrill said the state remains committed to addressing healthcare costs despite what she called the federal government’s mismanagement of health insurance pricing. New Jersey’s state-level subsidies remain in place, though they cover a narrower income band than the expired federal credits.
The future of enhanced premium tax credits remains uncertain as Congress weighs whether to restore the pandemic-era funding levels. Without federal action, state officials expect further declines in marketplace enrollment and increased reliance on emergency care among the uninsured.