May 2026 | Joel Cantor, Derek DeLia | FY2027 Budget Proposal Begins to Tackle Healthcare Affordability, But More Will Be Needed
Governor Sherrill’s first budget proposal provides an early look into the administration’s healthcare affordability agenda. In her budget address, the Governor called healthcare “one of the biggest crises of our time.” The administration’s Affordable Healthcare Action Team has plainly stated that, “For far too many residents, healthcare is simply too expensive.”
We agree.
Governor Sherrill rightfully notes that the national healthcare system is a root cause of New Jersey’s problems. Nationally, per capita healthcare spending continues to grow rapidly. This trend has burdened people with private insurance the most, as costs for them rose much more over 2008-2024 compared to per enrollee costs for Medicare or Medicaid.
Notably, healthcare challenges are greater here. New Jersey spends more per resident on healthcare than all but nine other states (and the District of Columbia). In our earlier blog, we observed that rising prices, especially by hospitals, are a major driver of New Jersey healthcare spending. Without state action, these costs will continue to rise rapidly. Below, we offer perspectives on Governor’s Sherrill’s approach to healthcare affordability, as reflected in her budget priorities, and make recommendations to strengthen this approach. There are two main tasks that we have outlined for the governor’s administration to consider.