If the individual mandate was not restored, NJPP estimated that the number of uninsured in New Jersey would have increased by up to 300,000 over the next decade; premiums would rise about 10 percent; the state would have lost billions in federal Medicaid funds and premium subsidies; and taxpayers would have been hit with a much bigger bill for charity care payments to hospitals.

Tax payers will benefit because fewer New Jerseyans will decide that it makes more sense for them to skip insurance and instead just go to an emergency room when they get really sick which drives up charity care costs at public expense. Over $400 million in charity care savings is achieved every year in New Jersey because of the ACA.Also, without an individual mandate it was expected that many employers would decide to not provide health coverage because it would no longer be required for their employees.

The new law also applies the penalty to anyone who purchased a plan that does not meet the essential benefits requirements in the ACA or New Jersey law. That was added to prevent short term and association plans, sometimes called “junk plans,” from being sold in New Jersey which are being pushed by the Trump administration to circumvent the ACA.

The current federal penalties are $695 per adult and $347 per child or 2.5 percent of family income, whichever is greater.