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New Jersey announced that starting in 2021, it would operate its own version of the Affordable Care Act (ACA) instead of relying on the federal system. While New York has been managing its ACA program directly since its inception in 2014, New Jersey began preparations under Governor Phil Murphy's administration and established an independent health insurance management system in 2021. Let's explore the changes to New Jersey's ACA as it transitions to independent operation in 2021.
There is no need to create a new account, and existing agents can be retained. Most importantly, it will be crucial to understand how individuals who enrolled in the ACA through the previous federal system will transition to this new system. Fortunately, existing enrollees will not need to create new accounts; they will only need to complete a few verification steps and can continue to receive assistance from their designated agents.
The enrollment period has been extended back to three months. Originally set at three months, the enrollment period was reduced to 45 days but has now been extended back to three months. This allows individuals ample time to review their plans without feeling rushed.
An additional welcome change with New Jersey's independent system is the introduction of state-level premium assistance beyond existing federal subsidies. This new assistance, called the New Jersey Health Plan Savings (NJHPS), provides $546 per year for individuals and $2,256 per year for families, targeting households that qualify for existing ACA subsidies based on income levels. Unlike the existing subsidies, which are reconciled based on actual income later, NJHPS does not require separate reconciliation and serves as an additional benefit rather than a replacement.
As the new system is implemented, there will inevitably be some trial and error. Additionally, careful consideration will be necessary to determine how to best utilize the new support system for individual benefit.
Starting in 2021, New Jersey will transition to a management system that directly operates the ACA. As a result, additional premium assistance provided by the state has been established alongside existing federal subsidies.
