Potential Health Insurance Premium Hikes in Washington State
Small business owners and self-employed individuals in Washington state may face significantly higher health insurance costs in 2026 due to requested premium increases from insurance providers. The 14 companies offering coverage through the Individual Health Insurance Market are seeking to raise their premiums by an average of 21.2%, according to recent filings with the state Office of the Insurance Commissioner.
The proposed increases are attributed in part to the expiration of Enhanced Advance Premium Tax Credits on December 31, 2025, unless extended by Congress. These tax credits, established under the American Rescue Plan Act in 2021 and extended through 2025 by the Inflation Reduction Act, have been helping approximately 300,000 Washington state residents afford health insurance through the individual market.
“These tax credits are how many people afford critical coverage that protects themselves and their families,” said Insurance Commissioner Patty Kuderer. “I know many members of Congress understand this and hopefully, they will prevail in these negotiations. Thousands of people in Washington state and millions across the country depend on the individual market and can’t afford to see prices rise unnecessarily.”
The tax credits applied to individuals earning up to $62,600 annually, with greater benefits for those earning less. According to the Washington Health Benefit Exchange, up to 80,000 state residents may drop their coverage if the subsidies expire.
Aaron VanTuyl, spokesman for the Office of the Insurance Commissioner, explained that the insurance companies are seeking higher premiums to offset the potential loss of customers when the tax credits expire. The requested increase is roughly double the 10.7% rise approved for the same companies last year.
It’s important to note that the proposed hikes apply only to plans in the Individual Health Insurance Market. Insurance plans offered through private employers, which cover most state employees, are regulated federally. Plans for public employees and teachers are overseen by the Washington State Health Care Authority.
The insurance companies’ request is just the initial step in a lengthy approval process. “The filings have to be determined that they are justified and whether the numbers make sense,” VanTuyl said. “That’s a fairly large process.”
If approved, the significant increase would add to the financial strain on small businesses already dealing with inflation and tariff policy uncertainties, according to Greg Deckard, CEO and chairman of Spokane-based State Bank Northwest.
“That’s off the charts,” Deckard said of the proposed hikes. “That’s triple what we’re seeing from our group insurance. That’s going to create a hardship and a lot of uninsured people.”
