New Medicaid Rules Take Effect For NJ Residents, More Changes Coming Soon

ESSEX COUNTY, NJ — Dozens of advocacy groups in New Jersey are warning that a big wave of Garden State residents could lose their health care insurance in the upcoming months – with the first cuts taking place this week.

According to the New Jersey for HealthCare Coalition, the number of uninsured and under-insured New Jerseyans has been spiking since the “One Big Beautiful Bill Act” was signed into law by President Donald Trump.

The coalition pointed to a recent report from the state’s Department of Banking and Insurance, which found that nearly 70,000 New Jerseyans dropped health insurance between January and April as their premiums skyrocketed.

More will be joining them soon, advocates say.

According to the state department of human services, some of the upcoming changes for Medicaid recipients include:

CUTS FOR IMMIGRANTS – Starting Oct. 1, some “non-citizen immigrants” may no longer qualify for NJ FamilyCare, the state’s Medicaid program. Those at risk of losing their eligibility include refugees, asylum seekers, humanitarian parolees, and victims of domestic violence or human trafficking. Others will continue to qualify for NJ FamilyCare/Medicaid, including green card holders, children under 19, and “lawfully present non-citizens” who are pregnant. As many as 25,000 legal immigrants may be impacted, state officials estimate.

NEW WORK REQUIREMENTS FOR ADULTS – More rule changes will take effect on Jan. 1, 2027, when many adults aged 19 to 64 will have to work, volunteer, or go to school to keep their coverage or qualify for NJ FamilyCare/Medicaid. Those who qualify for exemptions may still have to renew their coverage every six months instead of every year. The changes will apply to more than 540,000 adults in New Jersey, state officials said.

The Trump administration has defended the new rules, claiming that they protect Medicaid for “eligible Americans” who rely on it – while cutting down on waste, fraud and abuse.

“The One Big Beautiful Bill removes illegal aliens, enforces work requirements, and protects Medicaid for the truly vulnerable,” the White House reported last year.

“By strengthening the integrity of Medicaid by eliminating waste, fraud and abuse, its resources can be refocused on providing better care for those whom the program was designed to serve: pregnant women, children, people with disabilities, low-income seniors, and other vulnerable low-income families,” the White House said.

Advocates with the New Jersey for HealthCare Coalition argue otherwise.

“Countless New Jerseyans are losing health care through no fault of their own,” said Laura Waddell, health care program director for New Jersey Citizen Action (NJCA), one of the coalition’s 75 member groups.

Waddell said the NJCA recently launched an online database of free and low-cost health care providers across the state on their website, which can be seen here.

The Essex County-based nonprofit hosted a webinar about the latest federal work requirements for FamilyCare/Medicaid on Wednesday. Watch it here, or view it below.

• Related: Sherrill Addresses How NJ Will Respond To Federal Medicaid Challenges
• Related: Looming Medicaid Cuts Will Increase Already-Rising Number Of Uninsured NJ Residents, Data Shows

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