Washington State Insurance Commissioner Patty Kuderer announced Wednesday that the agency will approve an average 22.2% increase in premiums for the 2027 Affordable Care Act (ACA) marketplace. The hike will affect about a quarter‑million Washington residents and small‑business employees who obtain coverage through the Washington Health Benefit Exchange.
Why the increase is being approved
Thirteen insurers submitted rate requests that averaged a 22.4% increase for 2027. Under state law, the commissioner must approve any increase that is actuarially justified. Kuderer said the rise reflects higher health‑care costs, including rising prices for medical services, prescription drugs, and increased utilization of care by enrollees.
“The increase is a reflection of the growing cost of care,” Kuderer said in a statement. “We are working to keep the marketplace affordable while ensuring that insurers can continue to provide quality coverage.”
Impact on Washington families and small businesses
About 250,000 Washingtonians currently rely on the exchange for coverage, including the self‑employed, early retirees, and small businesses with fewer than 50 employees. The rate hike will raise monthly premiums for many families, prompting concerns about affordability.
Jim Freeburg, executive director of the Patient Coalition of Washington, expressed frustration on behalf of families: “It’s unfair for families to face such steep increases while trying to cover their health needs.”
Recent enrollment trends
Enrollment in the Washington exchange this year fell by roughly 36,500 participants – a decline of about 13% from 2025 – marking the largest drop since the marketplace launched in 2013. The decline followed the expiration of federal premium tax credits that had been available during the COVID‑19 pandemic.
Rural counties saw some of the steepest enrollment drops, though the state’s premium assistance program, Cascade Care Savings, helped mitigate the loss for many residents.
What’s next
The Washington Health Benefit Exchange Board is scheduled to certify the new rates at its Thursday meeting. Open enrollment for the 2027 plan year begins on November 1 and runs through January 15.
One insurer not participating in the exchange, Asuris Northwest Health, is awaiting approval for a 14.9% increase that would affect its roughly 800 Washington enrollees.
Looking ahead
State officials warned that without additional measures to curb health‑care spending, premium growth could continue to outpace wage growth, putting further pressure on families and small businesses. Kuderer emphasized that the department will continue to monitor market conditions and work with insurers to seek cost‑containment strategies where possible.
For Washington residents seeking alternatives, options include joining a family member’s plan, obtaining employer‑sponsored coverage, or exploring other state‑run assistance programs.
Original reporting: Clark County Today (Vancouver WA) — read the source article.
