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State insurance commissioner warns federal changes could shrink New Jersey marketplace gains
Summary
Department of Banking and Insurance Commissioner Justin Zimmerman told the Senate Budget Committee that Get Covered New Jersey has grown to more than half a million enrollees and depends on federal pass-through funding and state subsidies now at risk from expiring tax credits and a proposed CMS rule that would shorten enrollment windows.
Commissioner Justin Zimmerman of the New Jersey Department of Banking and Insurance told the Senate Budget and Appropriations Committee on May 1 that the state's health insurance marketplace, Get Covered New Jersey, has reached record enrollment and that recent federal actions threaten that progress.
Zimmerman said the department's FY2026 operational budget is $65,300,000 and that the exchange enrolled "over half a million New Jerseyans" during the most recent open-enrollment period. He credited state policy changes and expanded outreach'including a bilingual advertising campaign and a network of 26 navigators'with increasing access.
The commissioner warned two federal developments could reverse those gains: the scheduled expiration of enhanced premium tax credits created by the Inflation Reduction Act at the end of 2025 without congressional action, and a Centers for Medicare & Medicaid Services (CMS) proposal that would reduce state-based exchanges' open-enrollment windows from the current three months to six weeks. Zimmerman said losing the enhanced credits could mean approximately $500,000,000 in federal tax credits for New Jersey residents and that, on average, consumers could pay about $1,260 more per person annually if Congress does not act.
Zimmerman also described state-level tools that have helped limit premium growth, including a reinsurance program approved via a state innovation waiver in Feb. 2023 that he said lowers individual-market premiums by about 15% and is supported this year by an estimated federal pass-through funding figure his office placed at roughly $555,000,000.
"This important flexibility is now in danger due to a federal policy proposal that would force all state-based exchanges to limit enrollment to 6 weeks," Zimmerman said. He added that the department has submitted formal comments on the CMS proposal.
The commissioner framed the exchange's operations as dependent on a blend of federal pass-through funding and state-managed subsidies (New Jersey Health Plan Savings), and said the department continues outreach and navigational supports so residents can access affordable plans.
The hearing produced no formal action on the funding risks; Senators pressed the department for additional detail on funding flows and potential contingency plans.
The committee is expected to continue budget reviews in subsequent hearings.
