Washington residents are facing significant health insurance increases in 2026, with both Affordable Care Act (ACA) exchange plans and employer-sponsored coverage expected to become more expensive.
At a Spokane town hall, Washington Insurance Commissioner Patty Kuderer warned that those using the exchange represent some of the state’s most vulnerable populations. “Lower-income families are going to find these increases hard to pay, and the fear is that they are going to drip out of the healthcare system,” she said. Kuderer added that if this occurs, the remaining pool of insured individuals is likely to be sicker, which would drive higher premiums for everyone.
Premium Increases Across the Board
ACA Exchange Plans: The state’s Office of the Insurance Commissioner projects an average 21% rate increase for 2026. This represents nearly double last year’s increase of 10.7%.
Employer-Sponsored Plans: National surveys suggest premiums could rise 6.5% to 10%, the steepest increase in 15 years, largely due to rising drug costs and higher utilization of health services.
Since 2011, Washington residents without employer coverage have been able to purchase plans through the Health Benefit Exchange. In 2024, nearly 300,000 individuals bought exchange plans, including 20,000 in Eastern Washington. These plans typically serve self-employed individuals, early retirees, or those without employer coverage.
Factors Driving the Increase
Kuderer explained that the 2026 premium surge is fueled by:
Rising healthcare costs – including consolidation of healthcare providers and higher utilization of services.
Increasing prescription drug prices – contributing significantly to overall medical expenses.
Expiration of premium tax credits – which have lowered annual insurance costs by about $1,330 per person since the COVID-19 pandemic. Without these credits, the Exchange projects that up to 80,000 residents may drop coverage, and individual premiums could jump as much as 75%.
“Insurers have built uncertainty into their rate requests, factoring in the potential expiration of federal tax credits,” Kuderer said. She noted that if Congress renews the credits, the 21% rate increase could be reduced by 4-6%.
Outlook for Washington Residents
For those purchasing insurance on the exchange, the coming year could represent the largest rate hike in recent history. Individuals and families are urged to review coverage options early, consider financial assistance programs, and monitor federal decisions on premium tax credits that could substantially affect costs.
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