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The roughly 300,000 Washingtonians who buy health insurance through the state’s online marketplace are set for a rude awakening as they begin shopping for plans.
That’s because premiums for individual insurance bought on the Washington Health Benefit Exchange through the Affordable Care Act are set to rise an average of 21% next year. The steep hikes stem from the expiration of federal tax credits that congressional Republicans refuse to extend.
Similar price jumps are happening nationwide. Last year’s average rate increase in Washington was 10.7%. Nationally, over 24 million people are covered with insurance from the marketplaces, which are used by people who do not have access to health insurance through their jobs or from government programs, like Medicaid.
Open enrollment begins Nov. 1, and will run through Jan. 15. To begin coverage by Jan. 1, enrollees should sign up by Dec. 15. Existing customers will be automatically renewed, but can still shop around and compare plans. The window shopping period for plans began Tuesday.
The enhanced tax credits, which began during the COVID pandemic, are central in the federal government shutdown that began Oct. 1.
Democrats in the U.S. Senate have refused to vote to reopen the government without the extension of the subsidies. Republicans haven’t yielded to that demand.
Less than two weeks from open enrollment, it’s unclear what would happen if Congress decided to extend the tax credits at this late stage.
Insurance companies offering plans on Washington’s exchange filed two sets of proposed rate increases with the insurance commissioner, one with the tax credits incorporated and one without. If Congress extends the subsidies, the commissioner would look to approve the alternative rate hikes.
The Washington exchange’s CEO, Ingrid Ulrey, said Tuesday that if Congress takes action, “we are committed to delivering that relief to our customers as quickly as possible.”
“However, it is complicated and not as easy as flipping a switch,” Ulrey added in a statement. “It would be weeks, not days, until the technical changes can be incorporated. But we will make it happen.”
Last month, state Insurance Commissioner Patty Kuderer said Congress needs to act quickly if lawmakers are going to extend tax credits, as her office would need to approve revised rates in time for open enrollment.
“We wish the shutdown would end sooner rather than later,” she said Tuesday. “I think the vast majority of Americans out there, especially those who take advantage of the enhanced premium tax credits that allow them to have access to health care, can see the injustice in that, and can see that this is not a functioning government.”
Washington officials have said the expiration of the subsidies would lead to 80,000 residents forgoing coverage. The credits save Washington enrollees an average of $1,330 per year, according to Gov. Bob Ferguson’s office. For seniors, those savings jump to more than $1,900 annually.
‘Significant premium increases’
Some Washington counties could see their premiums rise more than others, according to a new report from U.S. Sen. Maria Cantwell, D-Wash.
In Yakima County, where over 5,000 enrollees benefit from the subsidies, premiums are set to go up 133% for those remaining enrolled without the financial help, according to Cantwell’s office. Snohomish County could see a 95% hike; Pierce County, 95%; King County, 94%; and Spokane County, 86%.
Cantwell said her constituents who get insurance through the exchange “face an impossible choice.”
“Pay hundreds or even thousands of dollars more next year for the exact same plan, downgrade their coverage, or forego health insurance altogether,” she said. “Congress must act immediately to extend the expiring Affordable Care Act tax credits or health care will be added to their list of financial burdens.”
Sen. Patty Murray said Tuesday that the “Republican leaders’ plan is to do nothing while those prices get locked in, and people get priced out of their health care.”
Those who choose to go without insurance are more likely to be healthy, likely fueling further premium hikes for those who remain insured, as the insurance pool would be less healthy overall and more risky for insurers.
The state still offers options for financial help, including Cascade Care Savings for people who make up to 250% of the federal poverty line. The premium assistance program, launched in 2023, helps nearly 100,000 residents.
The exchange is seeking $130 million per year in state funding for Cascade Care Savings to mitigate the loss of the federal tax credits.
“Some of our customers will see significant premium increases due to the scheduled expiration of the federal enhanced premium tax credits at the end of 2025,” Ulrey said in a statement. “However, others might be surprised to learn they can retain their same coverage at similar or lower cost.”
Healthplanfinder is collecting stories from its enrollees who are concerned about the insurance cost increases.
Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com.
Congress (Republicans and Democrats) cannot negotiate or legislate while shut down. All the Senate Democrats have to do is come back to the bargaining table and discussions will continue. Healthcare costs since Obamacare are exploding, far outpacing inflation, and the insurance companies are making a killing while healthcare facilities and workers struggle to survive. The Democrat plans are government subsidies with no cost controls. It is literally bankrupting our country but the media continues to run cover for the Democrats. We cannot continue to borrow. The longer Senate Dems sit this out the more damage they do to working class people. Washington State Senators continue to lie to us. Please go back to work!
Congress is not shut down, the Executive Branch is. The Senate has been passing and advancing other bills while the stalemate continues. The House could be in session doing other work. Their continued adjournment is a tactic to increase pressure on Democrats, and not without an impact on other things that could be, and need to be, done. They will have to come back no later than Thanksgiving, because the bill they passed originally was for 7 weeks and will no longer be applicable.
I am so confused by this letter. “The longer Senate Dems sit this out…”? Isn’t congress not working at all because the Speaker of the House, Mike Johnson, sent the Republicans home instead of working with the democrats on this? Didn’t Trump direct the Republican Senators to “Not negotiate” with the Democrats? Karoline Levitt stated yesterday from the White House Press Room that Trump’s highest priority is building his ballroom after destroying part of the White House. So laying this at the feet of the Democrats is laughable at best. Trying to keep costs down for average Americans is not bankrupting this country; running interference so Billionaires can have their massive tax cuts is.
The House has already voted on a continuing resolution but the Senate Democrats refuse to vote yes to reopen the government. The Senate requires a 60% majority. All Republicans have voted yes but only 3 or 4 Democrat Senators have voted yes the others vote as a single NO block, thus the government remains shut. Whether the House Republicans are in DC or at home doesn’t matter. It is in the Senate’s hands. I don’t mean this to sound glib because you can like or dislike the ballroom idea but the fact is, it has nothing to do with opening up the government. As a side note – the ballroom is being totally funded by private donations. Whether we are poor, middle class, wealthy or worth billions shouldn’t matter. We are all Americans. Billionaires come from all parties.
The Democrats are insisting that Republicans extend Obamacare subsidies that will expire at the end of the year. Failing to do so would lead to increased health care costs for millions of people. By not extending the subsidies, healthcare costs will skyrocket and many Americans will lose their healthcare coverage. Democrats are standing up for all Americans in this moment. But maybe the Republicans staying home isn’t really about that. As a side note…Mexico is going to pay for the wall…the White House won’t be touched for the ballroom…etc. The list is endless. Excuse me if I don’t believe one word of the “private” donor line. You may fall for the endless gaslighting, but most Americans have seen through it. What Leavitte’s statement has to do with re-opening the government is to illustrate just how little Trump and the Republicans really care. And billionaires do come from both parties…not the point at all. They all should pay their fair share of taxes.