New work requirements begin in January, while state guidance explains when existing members will face the rules and what they can do to keep coverage.
NEW JERSEY – More than 300,000 New Jersey residents could lose Medicaid coverage, most by the end of the state’s 2028 fiscal year, as federal eligibility and funding changes take effect, Human Services Commissioner Dr. Stephen Cha told lawmakers Oct. 22. Even the state’s more optimistic projection anticipates approximately 165,000 coverage losses, according to his testimony to the Senate Health, Human Services and Senior Citizens Committee.
Those figures are estimates. Cha warned that eligible NJ FamilyCare members could lose insurance because they fail to complete new verification steps. NJ FamilyCare is the state’s Medicaid and Children’s Health Insurance Program.
The next major change begins Jan. 1, 2027, when certain adults ages 19 through 64 enrolled in NJ FamilyCare’s Alternative Benefit Plan will face work or other qualifying activity requirements. Most members in that group will also move from annual eligibility reviews to renewals every six months.
The requirements stem from Public Law 119-21, the federal budget law enacted in July 2025. The Centers for Medicare & Medicaid Services says the policy is intended to encourage employment, education and self-sufficiency. New Jersey officials have warned that additional paperwork will also remove people who remain eligible.
When members will face the requirement
January’s start date does not mean every affected member must submit documents that day.
According to New Jersey’s current implementation guidance, the first affected groups are people applying on or after Jan. 1 and existing members whose next renewal month is March 2027. The state’s fall notification letter explains the change; receiving that general notice does not mean coverage is ending or require a response.
For people subject to the rule, qualifying activities include employment, approved job training, volunteering and education. The federal framework generally sets an 80-hour monthly activity threshold, with alternatives for qualifying income or at least half-time education.
New Jersey’s guidance says members can satisfy its renewal check by meeting a qualifying condition for at least one month since their last renewal.
Federal exclusions include pregnant and postpartum people, people who are disabled or medically frail, and certain parents or caregivers of children younger than 14 or people with disabilities. Most children and members in NJ FamilyCare’s Aged, Blind, Disabled category will keep their existing eligibility rules.
What residents can do
Members should keep contact information current and respond to requests for information.
The state’s guidance lists 1-833-409-2370 for questions about the work requirements and 1-800-701-0710 for application or renewal assistance. Residents can also use the Activity Requirements Checker linked from the official guidance.
Federal rules require notice and a 30-day opportunity to establish compliance or an exclusion when the state cannot verify eligibility. People who lose coverage may reapply. New Jersey also provides information about fair hearings and submitting missing documents.