WA could see 'sharp' rise in insurance premiums if ACA tax credits expire

Health Insurance sticker shock coming for WA residents

The cost of health insurance could increase for thousands of Washingtonians as federal subsidies are set to expire.

BELLEVUE, Wash. - The price of health insurance premiums could soon be too expensive for the 24 million people enrolled in the Affordable Care Act (ACA).

At the end of 2025, Enhanced Premium Tax Credits under the ACA will expire. If Congress does not vote on legislation to extend the credits, the price of insurance premiums could soar nationwide in 2026.

What they're saying:

"It’s an unprecedented assault on the healthcare of the American people," said Rep. Hakeem Jeffries (D-NY), minority leader of the U.S. House of Representatives.

Rep. Jeffries joined Washington Governor Bob Ferguson, congressional members, and health leaders during a news conference on Friday at Overlake Medical Center and Clinics in Bellevue. 

"We’re going to have some big challenges as a state to grapple with the impacts of this if it goes forward. But right now, we need to be clear in our objection to this, to communicate to the American people what’s at stake and what this means for them," said Ferguson.

Why you should care:

In Washington, these tax credits, also known as enhanced subsidies, help lower the cost of private health plans through the state’s Health Benefit Exchange. Currently, more than 280,000 Washingtonians are enrolled. These are people who don’t have access to a plan through their employer—like students, contractors, the self-employed, unemployed and retirees.

If the enhanced subsidies expire, state leaders said at least 80,000 people won’t be able to afford their healthcare coverage.

"For the others who manage to keep their health coverage, those Washingtonians will see their costs skyrocket effective January 1," said Ferguson.

The potential price increase will be steep. According to the Washington State Office of the Insurance Commissioner, the 2026 health insurance rates for the individual exchange will be 21 percent higher than the current rate.

"If you combine the rate increase for next year with the loss of subsidies, the average Washingtonian on the exchange will see a 65 percent increase in their health insurance premiums next year. That translates to spending $1,300 more a year for premiums alone," said Rep. Suzan DelBene (D-WA). 

Timeline:

The subsidies started in 2021, offered by the Democrats through the American Rescue Plan Act. Lawmakers extended the credits in 2022. Now that they are set to expire, it’s unclear if the Republican-controlled House will extend them again.

Only some House Republicans have proposed legislation to extend the subsidies past the 2026 midterms. FOX 13 contacted Washington’s GOP and some Republican congressional leaders for comment.

In an interview with FOX 13 Seattle, Rep. Jeffries said voters should speak to their congressional leaders before the expiration deadline.

"We have an opportunity over the next few weeks to begin to fix our broken healthcare system and stop the American people from experiencing thousands of dollars in increased premiums, co-pays and deductibles in an environment where the cost of living is already too high," said Rep. Jeffries.

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