Acting on a commitment to restore the Affordable Care Act in New Jersey, Gov. Phil Murphy has signed legislation that will increase affordability and expand access to health care by creating state-level subsidies to lower the cost of health insurance for residents purchasing coverage on the Marketplace this fall. The measure was originally included in the Governor’s initial FY2021 state budget.
“As the federal government continues to attack critical provisions of the Affordable Care Act, our Administration remains committed to lowering the cost of coverage, expanding access to care, and improving health equity for our most vulnerable,” said Murphy. “This action could not come at a more critical juncture, and will directly benefit our uninsured and underinsured populations at a time when many New Jerseyans have lost health coverage as a result of the COVID-19 pandemic.”
The legislation (S2676/A4389) establishes the New Jersey Health Insurer Assessment (HIA), which is a continuation of a federal assessment on health insurance companies that will sunset at the end of the year. All of the revenue generated will be used to support residents and families purchasing policies on the individual market. It will allow the state to provide state-level subsidies, in addition to federal subsidies that are available, for the majority of consumers purchasing insurance on the State-Based Marketplace when the ACA Open Enrollment Period begins on Nov. 1.