Currently, the health insurance marketplace in New Jersey is undergoing some changes. Among these changes are the new Individual mandate and COVID-19. These changes are aimed at making health insurance more affordable for New Jersey residents.
Among the four plan categories on the Health Insurance Marketplace, Bronze plans are the cheapest. However, a Bronze plan can be a poor fit for many people. In fact, it may be best avoided by anyone with a chronic condition, those who have to frequently visit the doctor, or those who need to take a lot of preventive care.
Bronze plans have lower monthly premiums, but higher deductibles. This means that you will pay for most of your health care until you reach a certain level of coverage.
The deductible is the amount you have to pay for health care before your insurance company will start to pay. For a Bronze plan, you will usually have a deductible of three to six thousand dollars.
Bronze plans also require more upfront payments for routine care. In addition, Bronze plans have the highest out-of-pocket maximums. These costs can be astronomical for people with high incomes.
Silver plans are the best fit for most consumers. They have a slightly higher monthly premium, but they have lower deductibles. Silver plan members can also enroll in a Gold plan. However, Silver plans do not qualify for premium subsidies, which help people afford better coverage.
The Silver plan also offers cost-sharing reduction subsidies. These subsidies work as tax credits. You can claim them on your federal tax return. This subsidy will lower your premiums by up to hundreds of dollars.
Earlier this year, the New Jersey legislature passed a bill that would impose the state’s individual mandate in the same way the federal mandate was required under the Affordable Care Act. Those who do not have health insurance are subject to a state tax penalty, which will be capped at the average cost of a bronze plan in New Jersey.
The bill also would establish a reinsurance program to offset the costs of the most expensive insurance plans. This would reduce the impact of extreme costs, while bringing young, healthy individuals into the state’s health insurance market. In order to make the program work, New Jersey would seek permission from the federal government. The program would be funded by industry fees and federal dollars.
The bill is being sponsored by Troy Singleton (D-Burlington) and Herb Conaway (D-Burlington). The program would be funded with penalty revenue from New Jersey’s health insurance market, which is one of the two markets in the country that was facilitated under Obamacare.
New Jersey’s new mandate will require residents to have health insurance beginning in January. Unlike the federal mandate, this one will not apply to individuals who are incarcerated or for religious reasons.
The new law also allows for an exception for individuals who are unable to obtain insurance due to a hardship. This exception will be determined by state treasurer Elizabeth Muoio. Among other things, New Jersey’s law prohibits the sale of short-term, limited duration policies. However, it will be a challenge to educate consumers about the new law.
Earlier this year, the COVID-19 health insurance marketplace was launched in New Jersey. This was a result of the Affordable Care Act (ACA). This program is similar to other special enrollment periods (SEPs) and provides eligible residents the opportunity to enroll in health plans throughout the year.
This program provides three forms of financial assistance. These include premium tax credits, cost-sharing reductions, and NJ Health Plan Savings subsidies. These can be accessed through Get Covered New Jersey.
To qualify for this special enrollment period, consumers must have an income up to 200% of the Federal Poverty Level. Consumers can also qualify if they have limited Medicaid coverage or if they qualify for NJ Family Care. If they qualify for one of these programs, they can enroll in a comprehensive plan that covers testing and treatments.
For consumers who are eligible for Medicaid or NJ Family Care, navigators will help them enroll in coverage. The navigators have completed training and will work with consumers to ensure they receive the right care at the right time. The navigators will also refer consumers to insurance ombudsmen.
This program is also available to consumers who are not enrolled in individual health benefits plans. Consumers who qualify will receive coverage no later than the first day of the month following plan selection.