Find out if you are one of them, see how your premiums may change and learn what can be done to prevent it.
Everyone should have access to quality, affordable healthcare no matter who you are or where you live in New Jersey. A federal law enacted in 2021 increased the subsidies available to individuals and families who purchased insurance through the Affordable Care Act’s (ACA) marketplace.
That law, The American Rescue Plan Act (ARPA), significantly reduced premiums for nearly 300,000 New Jerseyans.
Who is facing higher premiums?
In response to the economic hardships triggered by the COVID-19 pandemic, ARPA expanded insurance premium relief for consumers. The law temporarily lowered premiums for most people who currently purchased a health plan through a government marketplace. It also raised income eligibility for financial assistance to other consumers so that they could more easily afford coverage. For 2022, individuals earning $77,280 and a family of four with income up to $159,000 were eligible for financial help.
Why may premiums rise?
Unless extended or made permanent by Congress, ARPA will expire at the end of the year. With the federal subsidies ending, many New Jerseyans may pay much more for health coverage through the marketplace and leave those who can’t afford the unsubsidized rates uninsured.
What can you expect to pay?
To figure out what you will pay should ARPA expire, a subsidy calculator can be found here: subsidyestimator.com/representative-tool/
To give a few examples:
Here’s How Many New Jerseyans Are Affected
The federal changes have been a critical healthcare affordability factor for families in New Jersey, where the median household income of $85,245 is fourth highest among all U.S states. The enhanced subsides last year benefited about 300,000 New Jerseyans and fueled a 15.6% – or 42,132 increase – in ACA plan state enrollment last year.
What Horizon is doing
More New Jerseyans choose Horizon for their health plan than any other carrier. As a not-for-profit health insurer, our focus is on helping our members. That’s why we are urging New Jersey’s federal lawmakers to make permanent the enhanced subsidies provided under ARPA.
We’re also asking Congress to automatically enroll individuals eligible for Medicaid or premium-free marketplace plans. This change will help those who are entitled to free coverage but who struggle to understand their choices or the enrollment process gain the protection and peace of mind that health insurance provides.
What YOU can do
We ask you to join us by connecting with your congressperson to share your view. Let your Representative or US Senator know whether or not you want Congress to act to keep health insurance more affordable for people who purchase their plans through the individual marketplace.
By Michael Considine, Vice President – Consumer, Small Group and Mid-Sized Markets, Horizon Blue Cross Blue Shield of New Jersey