Health Insurance Rate Hike
Washington regulators approve an average 22.2% individual health insurance rate increase for 2027.
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Key Points
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Insurers initially requested an average 22.4% increase, but regulators approved a slightly lower 22.2% increase for 2027.
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The 12 approved insurers will offer individual plans covering an estimated 281,055 people statewide in 2027.
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The Office of the Insurance Commissioner said that departing insurers helped leave behind an enrollee pool with higher average medical needs, while healthier members were more likely to drop coverage after enhanced federal tax credits expired.
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Commissioner Patty Kuderer warned that affordability pressures could continue unless policymakers slow health care spending, improve affordability and keep more people insured: “Families shouldn’t experience sticker shock every year when shopping for health insurance.”
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Providence Health Plan covered 254 individual-market enrollees in 2026 before exiting the market for 2027; Asuris Northwest Health sells only outside the exchange and its proposed 14.9% increase was still pending review.
Washington state regulators approved a 22.2% average premium increase for individual health insurance plans in 2027, slightly above the 21% jump for 2026. Washington State Office of the Insurance Commissioner said rising health care costs and shifting enrollee demographics drove the hike. The approval affects roughly 281,000 people buying coverage on their own next year.
The increases come as enrollment in individual plans dropped 13% in 2026 after federal tax credits that cut costs by an average of $1,330 per person expired. Insurance Commissioner Patty Kuderer warned that continued affordability pressures could force policymakers to act: "Families shouldn't experience sticker shock every year when shopping for health insurance."
Why Premiums Jumped So High in 2027
Insurers requested an average 22.4% increase but regulators approved 22.2% instead. The Insurance Commissioner blamed three main drivers: rising health care costs, more frequent use of medical services, and sicker people staying enrolled. Healthier members dropped coverage when subsidies ended, leaving a riskier pool behind.
Providence Health Plan quit the market entirely, covering just 254 enrollees in 2026. Asuris Northwest Health's proposed 14.9% increase remained under review and only sells outside the online marketplace. Twelve insurers won approval to sell statewide, with Coordinated Care, Kaiser, and Lifewise serving Whatcom County exclusively.
Federal Tax Credits Expired, Enrollment Collapsed
Enhanced federal premium subsidies that helped cover costs disappeared after 2026, causing enrollment to plummet 13% to roughly 250,000 people. Those credits had reduced costs by an average of about $1,330 per enrollee annually. Without that support, many people dropped coverage entirely.
The shrinking, sicker pool left behind pushed up rates further. Insurance Commissioner Kuderer signaled that without action on health care spending, these double-digit increases will keep returning: affordability must improve or more enrollees will leave the market.
What 22.2% Means for Individual Plan Shoppers
The 22.2% increase applies on average—some plans and enrollees will face larger or smaller hikes depending on age, location, and plan tier. Twelve approved insurers competing statewide means some choice remains, though Providence's exit narrows options in some areas. The approved rates take effect in 2027 for new and renewing policies.
Without federal subsidies to cushion the blow, most individual buyers will feel the full impact of these raises in their monthly premiums. Commissioner Kuderer's warning reflects a broader anxiety: without slowing health care spending or restoring tax credits, the individual market could shrink further as people opt out of coverage entirely.
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