Washington’s insurance commissioner has approved an average 22.2% increase in premiums for health plans sold through the state’s insurance exchange next year.
The decision extends a second straight year of steep increases for people who do not get coverage through an employer or government program.
The higher rates take effect Jan. 1 and affect nearly 250,000 people enrolled through Washington Healthplanfinder, including self-employed workers, early retirees and some small-business employees.
Insurance Commissioner Patty Kuderer said 12 insurers were approved to sell individual plans in 2027.
The companies had sought an average increase of 22.4%, and the office determined that a 22.2% increase was actuarially justified.
Premiums rose an average of 21% this year.
Insurers cited rising costs for medical services and prescription drugs, greater use of health care and a shift toward more expensive services.
They also pointed to the expiration of enhanced federal premium tax credits.
“Families shouldn’t experience sticker shock every year when shopping for health insurance,” Kuderer said in a statement, adding that the pressures are likely to continue without steps to slow health care spending and improve affordability.
Jim Freeburg, executive director of the Patient Coalition of Washington, said the increase will have “real consequences” for families and small businesses that rely on exchange coverage.
Open enrollment begins Nov. 1 and runs through Jan. 15.
The premium increase comes as Washington officials prepare for major changes to Apple Health, the state’s Medicaid program.
Under H.R. 1, the federal budget law signed by President Donald Trump, Washington will no longer receive many of the federal subsidies that helped support Apple Health.
Gov. Bob Ferguson said the state is working to limit coverage losses.
Beginning Oct. 1, about 11,000 lawfully present immigrants are expected to lose Apple Health coverage, down from an initial estimate of 14,000 after state outreach helped about 3,000 people retain eligibility.
On Jan. 1, more than 600,000 Washington residents are expected to face new work requirements and more frequent eligibility reviews to keep Apple Health coverage.
State officials estimate that more than 200,000 people could lose Apple Health by the end of 2027 because of the federal changes.
Ferguson’s executive order created a committee to monitor coverage disruptions, coordinate the state response, and develop strategies to protect access to care and control costs.