When New Jersey launched supplemental state premium subsidies along with the launch of its state-based ACA marketplace, GetCoveredNJ, in the fall of 2020, I was somewhat taken aback to note that the state subsidies were heavily weighted toward enrollees at higher incomes.
The supplemental NJ subsidies ranged from $20/month at an income of 138% FPL ($17,609 for an individual) to $95/month, beginning at an income somewhere between 250% and 300% FPL (around $38,000 for 40 year-old individual, according to my price checks on GetCoveredNJ).
As I noted at the time,
The smaller subsidies at low incomes leave substantial premiums in place at incomes below 200% FPL for silver plans, which carry a strong CSR [Cost Sharing Reduction] benefit up to that income threshold.
For a 40 year-old with an income of $25,000 (just under 200% FPL), the lowest cost silver plan in most of the state will cost $86/month. The deductible is $800; the out-of-pocket maximum is $2,600. The lowest cost bronze plan is $17/month, with a deductible of $6,000 and an OOP max of $7,000. Last year, cheapest silver would have cost about $125/month.
Well, the American Rescue Plan Act (ARPA), signed into law in March, with an extra boost from New Jersey, has solved that problem, at least through 2022 (and hopefully beyond, if Democrats make the new subsidy levels permanent as they intend). New Jersey's income-weighted subsidies mesh quite well with the subsidy boosts provided by ARPA, which reduced premiums for a benchmark (second cheapest) silver plan with strong CSR to $0 at incomes up to 150% FPL and to 2% of income at 200% FPL.
The New Jersey supplemental subsidies all but wipe out premiums for a silver plan all the way to 200% FPL. Here's what's available to a 40 year-old with an income of $25,500:
Additional monthly premium savings
Estimated New Jersey Health Plan Savings of up to $40 /month
Based on your income, you may qualify for new and expanded financial help through state subsidies. The State of New Jersey recently increased the state subsidy amount and made financial help available for more income levels to lower your monthly premium payment
Thanks for the progress report.
ReplyDeleteNow for the real challenge -- living on $25,000 a year in most parts of New Jersey. I have only visited Princeton and Cape May, but I could not live there long enough on $25K to even benefit from health insurance.
This also shows the political weakness of the ACA --the law gives solid and deserved aid to the poor, but until very recently had next to nothing for the middle classes above $40K in annual income. This means testing flaw opened the door for politicians like Trump to trash the ACA.