Health insurance rates to jump nearly 20% in 2027 as enhanced tax credits expire
Insurance carriers attributed the increases to soaring medical and prescription drug costs, combined with a deteriorating risk pool caused by the federal government allowing enhanced premium tax credits to expire.
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New Jersey residents buying health insurance on the individual market will see double-digit rate hikes next year, with plan premiums set to jump by a weighted average of 19.8% for 2027.
The New Jersey Department of Banking and Insurance published the final 2027 rate changes for carriers operating in the individual market, including Get Covered New Jersey, the state’s official health insurance marketplace. Open enrollment for 2027 coverage begins November 1, 2026, and runs through January 31, 2027.
Insurance carriers attributed the steep increases to soaring medical and prescription drug costs, combined with a deteriorating risk pool caused by the federal government allowing enhanced premium tax credits to expire.
Under New Jersey law, insurance carriers serving the individual market are required to submit annual informational rate filings, but the state department does not have statutory authority to approve or reject rates.
"New Jersey families are already grappling with a serious affordability crisis, and rising medical and prescription drug costs threaten to price residents out of the coverage that they need to stay healthy," Governor Mikie Sherrill said in a statement, placing blame on Washington for letting enhanced tax credits lapse and forcing families to choose between coverage and basic expenses.
Department of Banking and Insurance Acting Commissioner Susan Ochs warned that the price jumps "will place extraordinary pressure on household budgets, and drive more New Jerseyans to make the heartbreaking choice to drop coverage altogether."
The rate increases vary significantly across the five primary individual market carriers in New Jersey:
UnitedHealthcare: 35.7% increase
Oscar: 29.3% increase
Ambetter from WellCare of New Jersey: 20.8% increase
AmeriHealth: 17.0% increase
Horizon: 15.3% increase
The 19.8% overall weighted average increase in New Jersey exceeds the nationwide median premium increase of 15% reported for Affordable Care Act-regulated plans, according to an analysis by the Kaiser Family Foundation.
State officials noted that the figures represent unsubsidized rates. Many consumers may still qualify for financial assistance and state subsidies through Get Covered New Jersey to offset out-of-pocket costs.
