Home › Blog › Is Private Health Insurance Cheaper Than ACA in New Jersey?
Is Private Health Insurance Cheaper Than ACA in New Jersey?
Short answer: for a healthy person who doesn't qualify for a subsidy, yes, usually by a wide margin. For everyone else, usually no. Here's the math behind that.
When private wins in New Jersey
Take a healthy 42-year-old in Newark earning $95,000. On Get Covered New Jersey with no subsidy, a Silver plan from Horizon Blue Cross Blue Shield of New Jersey, AmeriHealth New Jersey, and Aetna CVS Health is roughly $650–$800 a month in 2026. A private PPO on the MagnaCare and Cigna PPO network for the same person is roughly $380–$480. That's $3,000–$4,500 a year, with a broader network.
When ACA wins in New Jersey
Same person earning $45,000: the premium tax credit could bring that Silver plan under $200 a month. No private plan competes with that. Same person with Type 1 diabetes or a recent cancer diagnosis: private plans may decline or exclude; the marketplace accepts them at the same price as anyone else. Medicaid is expanded (NJ FamilyCare) in New Jersey.
What "cheaper" has to include
Compare out-of-pocket maximums, not just premiums. Many private PPOs have individual out-of-pocket caps around $6,000–$9,000, similar to marketplace Silver plans. Check that your doctors are in the PPO network. And remember private plans are month to month — if your income drops into subsidy range during the year, you can move to the marketplace at the next open enrollment or life event.
The New Jersey factor
New Jersey does not allow short-term medical plans, so the private alternatives here are the shared-network PPO plans rather than short-term coverage.
We run both quotes for every client — it's the only honest way to answer the question. Start here.