Governor Signs Bill Requiring New Jersey Residents to Have Health Care Coverage

06 June 2018 By Barry E. Fields

Governor Phil Murphy signed into law a bill that requires New Jersey residents to have health coverage or pay a penalty.  

The law, which will take effect on January 1, 2019, will require every New Jersey resident to obtain health insurance with minimum essential coverage or pay a fee, essentially adopting the rules of the federal Affordable Care Act (ACA). Under the Individual Mandate at the federal level, most Americans were required to obtain health insurance or pay a fine.  However, beginning in January 2019 there is no fee associated with the Individual Mandate due to the federal repeal. The main purpose of this new law is to

override the federal repeal for New Jersey residents at the state level. New Jersey’s mandate, which mirrors the former federal requirement, includes an annual penalty of 2.5 percent of a household‘s income or a per-person charge, whichever is higher. The maximum penalty based on household income will be the average yearly premium of a bronze plan. If it’s based on a per-person charge, the maximum household penalty will be $2,085. A “hardship exception” for individuals who cannot afford coverage would be determined by state Treasurer Elizabeth Muoio. New Jersey lawmakers feared the federal repeal would drive healthier people out of the marketplace causing premiums to spike. They believe this law is pertinent to stabilize the marketplace, keep not only unhealthy but the healthy people insured, and prevent a death spiral of the individual market.

We will keep you apprised of additional details as they become available.  In the meantime, please let us know if you have any questions.

Barry E. Fields
Vice President, Employee Benefits

Cell: 908-406-7000 | Fax: 732-834-0233
101 Crawfords Corner Road, Suite 1300, Holmdel, NJ 07733

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Last modified on Wednesday, 06 June 2018 14:38

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