Washington residents buying individual health insurance face an average 22.2% premium increase in 2027 after Insurance Commissioner Patty Kuderer approved the largest rise in nearly a decade.
The decision affects plans sold through the Washington Health Benefit Exchange, the state’s Affordable Care Act marketplace. Thirteen insurers have been approved to offer cover, with the new rates due to take effect on 1 January.
Insurers had sought an average increase of 22.4%, but the Office of the Insurance Commissioner said 22.2% was actuarially justified. The approved changes affect about 281,000 people.
Health officials said the increase was being driven largely by higher medical and prescription drug costs, greater use of healthcare services and a shift towards more expensive treatment.
The end of enhanced federal premium tax credits has also contributed to pressure on the market. The credits made cover more affordable for many customers, and their expiry has encouraged some healthier people to leave, leaving a costlier pool of policyholders behind.
“This is, unfortunately, a reflection of the increasing cost of care,” Ms Kuderer said. “Families shouldn’t experience sticker shock every year when shopping for health insurance, but these pressures are likely to continue without changes that slow health care spending, improve affordability and keep more people covered.”
Nearly 250,000 Washington residents bought individual health plans through the exchange in 2026, about 13% fewer than the previous year. The decline followed the loss of the enhanced tax credits, which had reduced enrollees’ annual premiums by an average of about $1,330.
Providence Health Plan, which covered 254 people, will not offer exchange plans in 2027. Asuris Northwest Health has requested a 14.9% increase for plans sold outside the exchange, but that rate remains pending.
