The Rising Cost of Healthcare in New Jersey

New Jersey’s senior population is expanding rapidly, intensifying the demand for affordable and accessible healthcare. With nearly 1.6 million residents aged 65 and older, ensuring access to affordable care is more urgent than ever. By 2030, nearly 20% of New Jersey’s population will be over 65, placing immense pressure on the state’s healthcare system to meet the complex medical needs of older adults.

Unfortunately, New Jersey ranks among the most expensive states for hospital stays, medical procedures, and insurance premiums. Hospital prices have consistently increased beyond the rate of inflation and far exceed Medicare rates, often charging more than 150% of what Medicare reimburses.

These excessive and unjust costs place a crushing financial burden on seniors and their families, forcing many to make difficult decisions about their healthcare.

The Devastating Impact of High Costs on Seniors

As people age, they require more frequent and intensive medical care– yet elderly patients cannot sustain the skyrocketing costs associated with their treatment. Seniors are hospitalized three to four times more often than younger adults, making them the largest consumers of hospital services in New Jersey.

With personal healthcare spending for seniors averaging $22,356 per year– more than five times higher than spending per child and nearly 2.5 times higher than spending per working-age adult—many older New Jerseyans are struggling to afford essential medical care. A recent report found a staggering 4 in 10 seniors worry about their ability to pay for treatment.

As a result, many seniors report delaying or skipping medical care, forgoing prescribed medications, and cutting back on essentials like food and utilities to cover medical expenses. This financial strain directly threatens their health and well-being, increasing the risk of severe medical complications and avoidable hospitalizations.

Price Transparency Can Help

New Jersey hospitals are among the worst offenders when it comes to compliance with price transparency laws. A 2024 report revealed that less than 10% of New Jersey hospitals fully comply with U.S. Center for Medicare and Medicaid Services transparency requirements. Without clear pricing, seniors are left in the dark, unable to make informed healthcare decisions.

As part of the state’s ongoing efforts to address rising healthcare costs, the NJ Healthcare Affordability and Transparency (HART) program was introduced to cap hospital price increases at 3.2% annually. This initiative was designed to help contain rising healthcare costs and ensure prices remain manageable for residents. However, despite these measures, hospital prices continue to increase beyond the rate of inflation.

60Plus calls on New Jersey to strengthen enforcement of the HART program and ensure hospitals adhere to the 3.2% rate cap. Without strict oversight, seniors in New Jersey will continue to suffer from excessive medical costs and reduced access to care.

New Jersey must hold hospitals accountable and demand fair and upfront pricing. Our seniors deserve better—and they are counting on you to act now.