Washington Health Insurance Rates Set to Rise 21% Amid Subsidy Cuts

Rising health insurance costs in Washington state are creating significant challenges for low-income residents. The average premium for individual insurance purchased through the Washington Health Benefit Exchange is set to increase by 21% in 2024. This announcement was made by state Insurance Commissioner Patty Kuderer, highlighting a trend in rising costs that mirrors similar increases across the United States. Last year, premiums had already risen by 10.7%.

The surge in insurance costs comes at a time when federal tax credits that assist low-income Americans in affording coverage are also set to expire. These tax credits, initiated during the COVID-19 pandemic, have significantly reduced premiums, with many residents benefiting from an average annual discount of $1,330. For seniors, the savings can exceed $1,900 annually. Without congressional action, nearly 300,000 residents who purchase health plans through the exchange could face difficult choices regarding their coverage.

Political Leaders Address Healthcare Concerns

On September 22, Hakeem Jeffries, the top Democrat in the U.S. House, visited Bellevue to voice his concerns about the increasing healthcare costs. He attributed the rise in insurance premiums to actions taken by congressional Republicans and the previous Trump administration, particularly regarding cuts to Medicaid and the potential expiration of federal support.

Jeffries stated, “Democrats will support a bipartisan spending agreement that is negotiated between the House and the Senate, if it lifts up the quality of life of the American people, with a focus on three areas: their health, their safety, and their economic wellbeing.” The looming deadline for government funding is September 30, 2023, and Jeffries warned that he is prepared to risk a government shutdown if essential healthcare provisions are not addressed.

During a press conference at Overlake Medical Center, Jeffries was joined by Governor Bob Ferguson, Kuderer, and U.S. Representatives Suzan DelBene and Kim Schrier. They collectively emphasized the need for immediate action to secure healthcare funding and prevent adverse effects on residents.

Impact of Subsidy Expiration on Residents

The Washington Health Benefit Exchange serves individuals who do not receive employer-sponsored coverage or qualify for public programs. A significant portion of enrollees — approximately 75% — are eligible for federal premium tax credits. The expiration of these credits could lead to around 80,000 residents opting out of health insurance altogether, potentially destabilizing the insurance market.

The implications of these changes extend beyond individuals. Jon Duarte, CEO of Overlake Medical Center, expressed concern that hospitals may face increased uncompensated care burdens if residents lose coverage. Kuderer highlighted the urgency for Congress to act swiftly to extend tax credits, as her office requires time to approve revised rates before open enrollment begins on November 1, 2023.

Additionally, the state is anticipating considerable cuts to Medicaid, stemming from legislation aimed at eliminating waste and fraud within the system. Critics argue that new work requirements for Medicaid eligibility and other legislative changes could cost Washington billions in federal funding, potentially displacing hundreds of thousands of residents from their healthcare coverage.

As the situation evolves, political leaders continue to advocate for the preservation of healthcare access, emphasizing the need for a collaborative approach to secure funding and support for vulnerable populations. DelBene stated, “We’ve come far in making healthcare more accessible and affordable, but we still have much more work to do.”