NJ public workers and ACA enrollees face steep health premium hikes for 2026
Trenton, N.J. – Health insurance premiums in New Jersey are set to rise sharply in 2026, with public employees and Affordable Care Act (ACA) marketplace enrollees bracing for some of the biggest increases in recent years.
Senate Republican Leader Anthony M. Bucco (R-25) and Senate Republican Budget Officer Declan O’Scanlon (R-13) issued a statement Thursday warning that the Murphy administration’s plan would drive up property taxes while leaving workers and municipalities saddled with higher costs.
According to state filings, public worker premiums are expected to climb nearly 20% for state employees and as high as 36.9% for local government workers. Teachers, police officers, and other public employees are among those who will feel the impact.
The state’s ACA marketplace, Get Covered NJ, will also see steep increases. Rates are projected to jump by 15.9% on average, affecting about 454,000 enrollees. The hike comes as enhanced federal subsidies expire after 2025, meaning many residents will lose access to the financial assistance that helped offset coverage costs.
Officials cited several factors driving the hikes: rising medical and pharmacy costs, particularly the growing use of high-cost GLP-1 medications; financial losses that drained stabilization reserves in some public plans; and adverse selection as higher-risk members remain in the system.
Republican lawmakers said the increases amount to a crisis deferred, with the “local benefits death spiral” left for the next administration to resolve.
Key Points
- Public worker health premiums in New Jersey are expected to rise 19.7% for state employees and up to 36.9% for local government workers in 2026.
- ACA marketplace enrollees face average increases of 15.9% as federal subsidies expire.
- Rising medical costs, loss of reserves, and adverse selection are driving the hikes.