New Jersey’s health insurance market for individuals will see an average rate decrease of 9.3 percent next year, thanks largely to a new state reinsurance program approved last month by the federal government. The program is part of a legislative package that imposes a state-level individual mandate to get insurance coverage and is designed to stabilize insurance prices.

“We have taken deliberate actions to defend the gains made by the Affordable Care Act, and our work is demonstrating results,” Gov. Phil Murphy said in announcing the decrease.

The savings will come from the state reimbursing individual health insurance carriers for a portion of the certain high-cost claims. In 2019, the program will reimburse 60 percent of claims between $40,000 and $215,000.

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The program will be funded by three sources: funds collected under New Jersey’s individual mandate and shared responsibility tax; federal pass-through funding granted by the waiver; and, if necessary, an annual appropriation from the state’s General Fund.

“Without these actions by the state, rates would have increased by double digits over last year; instead, residents will see a decrease in the cost of health insurance for the upcoming plan year,” DOBI Commissioner Marlene Caride. “This is major progress for New Jersey, and it is contrary to the experiences of other states in the nation. We are committed to defending access to coverage and care and look forward to continuing our work to address affordability for New Jersey residents.”

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3 responses to “New Jersey Health Insurance Costs to Drop 9.3 Percent in Individual Market”

  1. Christina says:

    What a bunch of horse hockey! They’re holding onto Obamacare and soaking the taxpayer AGAIN. Do they ever listen to the words coming out of their mouths?! Absolute double speak. They’ve done NOTHING except hasten the departure of high earners. Murphy is an unmitigated DISASTER.

  2. Steven Priolo says:

    Murphy has no idea what’s going on. We are giving the insurance company money for their higher claims. You guys must be smoking marijuana before the law is passed. Bc/bs has around a 3 billion dollar surplus. How do they need money. Again big business screw the tax payers and give the doctors less money so they leave this sinking state

  3. Al Barbieri says:

    This is nothing more BS political puke from NJ Lawmakers. The title to the article “Health Insurance Costs To Drop 9.3%” is also deceptive. When you read the article you find out it has to do with claims, not the out of control cost of health insurance in NJ. Phil Murphy will only hasten the exodus from the state. Will the last person out of NJ please turn the lights out….