NJ Officials Urge Congress to Renew Enhanced Health Insurance Tax Credits

Over 450,000 New Jerseyans face steep premium increases and loss of federal aid if enhanced subsidies under Get Covered New Jersey expire.

TRENTON, NJ — New Jersey Department of Banking and Insurance Commissioner Justin Zimmerman has called on Congress to extend enhanced federal premium tax credits that currently make health insurance more affordable for more than 450,000 residents enrolled through Get Covered New Jersey, the state’s official health insurance marketplace.

The credits, originally enacted under the American Rescue Plan Act of 2021 and extended through the Inflation Reduction Act of 2022, are set to expire unless Congress intervenes. In a letter to New Jersey’s Congressional delegation, Zimmerman warned that failure to act could eliminate over $500 million in federal support and sharply raise premiums across the state.

“Since establishing the marketplace, New Jersey has worked to maximize financial support to reduce health insurance costs — opening the door to quality, affordable coverage for hundreds of thousands of residents, and, as a result, Get Covered New Jersey has seen extraordinary enrollment numbers. If these enhanced premium tax credits are allowed to expire, nearly half a million New Jersey residents would see their cost of health insurance skyrocket,” said Commissioner Zimmerman. “We have seen the significant impact these expanded tax credits have had on lowering the cost of health coverage for New Jersey residents and their families — more people than ever are now covered by health insurance, and they are paying less for it. I strongly urge Congress to prevent the cost of health insurance from increasing for hundreds of thousands of New Jerseyans and work toward renewing or making permanent these vital tax credits as soon as possible on behalf of residents who rely on them for quality, affordable health coverage.”

Without these tax credits, nearly 88 percent of Get Covered New Jersey enrollees—totaling over 450,000 people—would face increased costs, with premiums expected to more than double on average. For individuals, this could mean an average annual increase of $1,260, while families could see increases of over $4,000. Older residents not yet eligible for Medicare would be especially hard hit, facing average hikes of $1,860 per person per year.

The premium tax credits have significantly expanded access to affordable coverage. Currently, 48 percent of enrollees receiving assistance pay $10 or less per month, and 43 percent pay $1 or less, compared to just 13 percent and 7 percent, respectively, before the expansion. Enrollment in the state marketplace has surged by 108 percent since its launch, reaching a record 513,217 residents in 2025.

Officials caution that losing the federal credits could reverse these gains. For example:

• A Union County couple in their early 60s with an income of $83,386 would see premiums rise by $17,439 annually, consuming 34 percent of their income.

• A family of four in Ocean County earning $131,386 would face a $20,189 annual increase, or 23 percent of their income.

Zimmerman’s warning comes as the Centers for Medicare and Medicaid Services considers regulatory changes that could further restrict access to affordable coverage. Proposed rules would cut the open enrollment period from three months to six weeks, and potentially limit eligibility for certain populations, including DACA recipients. These proposals are being considered as part of federal budget reconciliation legislation.

In addition to the letter sent by Commissioner Zimmerman, 19 leaders of state-based health marketplaces nationwide have joined a broader call for Congressional action to preserve the tax credits.

Get Covered New Jersey’s annual open enrollment period runs from November 1 through January 31, but consumers with qualifying life events or incomes under 200 percent of the federal poverty level (up to $30,120 for an individual or $62,400 for a family of four) can apply year-round through the Expanded Access Special Enrollment Period.

Health plans offered through the marketplace include essential services such as emergency care, prescription coverage, prenatal and pediatric services, and preventive care. Coverage is guaranteed regardless of pre-existing conditions.