Effective January 1, 2019, the New Jersey Health Care Insurance Market Preservation Act will require all NJ residents to obtain health insurance or face a fine. The NJ law mirrors the former federal requirement under the Affordable Care Act.
Penalties under the NJ law are based on individual/family income and are capped at the cost of the statewide average premium for Bronze Health Plans in NJ, as determined by the NJ Department of Banking and Insurance.
There are exemptions to the penalty, which include: when there is a short gap in coverage and when coverage is considered unaffordable, among other reasons. Individuals who are not required to file a New Jersey Income Tax return are automatically exempt.
The penalty amount will be calculated and entered on an individual’s 2019 New Jersey Income Tax return (Form NJ-1040).
There are currently no published regulations and the state is creating a mechanism for reporting, which will model the Form 1095 and the transmittal structure created by the federal Affordable Care Act. Instructions, forms and guidance will be made available before July 2019.
There is additional information on the State of New Jersey website: https://www.state.nj.us/treasury/njhealthinsurancemandate/index.shtml