New Jersey residents shopping for health coverage through the Affordable Care Act marketplace may want to brace for higher bills next year. Insurers have asked the state for permission to raise premiums by double digits in 2026, a move they say reflects climbing medical costs and the possible end of federal aid that has kept plans more affordable in recent years.
What Insurers Are Requesting
Horizon Blue Cross Blue Shield, the dominant player in the marketplace, is asking regulators to approve an average increase of 17 percent. AmeriHealth, which holds the second-largest share, wants an average hike of above 15 percent. UnitedHealthcare is seeking the biggest jump: over 18 percent on average.
Altogether, the proposals would affect about half a million residents who buy their coverage through the state’s exchange, known as Get Covered NJ. If federal subsidies are rolled back at the same time these hikes take effect, many households will feel a serious squeeze. That could push some younger and healthier customers out of the market altogether, which in turn would drive up costs for everyone else.
Why It Matters for Families
For years, New Jersey has leaned on federal subsidies to expand coverage, especially after Gov. Phil Murphy launched a state-run exchange in 2020. Enrollment has grown steadily since then. But affordability is fragile.
Health care inflation is also making a comeback, with costs rising at levels not seen since before the 2008 recession. For families already stretched thin, another jump in premiums could mean cutting back elsewhere just to stay insured.
A Marketplace at Risk
The Affordable Care Act created exchanges in 2014 to give people without employer coverage a place to shop for plans. But the stability of those marketplaces depends on enough people—young and old, healthy and sick—staying enrolled.
If prices climb too high, experts warn, New Jersey could see enrollment slip. State officials estimate that premiums could rise by an extra three percentage points if large numbers of healthier consumers walk away from coverage.
Regulators at the New Jersey Department of Banking and Insurance will now review the proposed rate hikes. A final decision is expected later this year.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.