The state Office of the Insurance Commissioner announced the rate change last week, and also announced approval of 11 insurers to sell in 2025’s benefit exchange marketplace

Carleen Johnson
The Center Square Washington

The more the 280,000 Washingtonians who get their health insurance through the Washington Health Benefit Exchange will see a 10.7% average rate increase in health insurance premiums. 

The state Office of the Insurance Commissioner announced the rate change last week, and also announced approval of 11 insurers to sell in 2025’s benefit exchange marketplace.

Depending on the insurer and plan chosen, some people will see an increase of nearly 24% (United Healthcare of Oregon) or as little as 5.7% (Molina Healthcare of Washington).

For those covered through the state exchange under Regence BlueShield, the rate will jump by nearly 23%.

Premium rates are contingent upon income, the plan selected, the number of people covered, their age, smoking habits, and where they live.   

“I know this rate increase will hit hard for many people, especially at a time when other expenses are up,” Insurance Commissioner Mike Kreidler said in a news release.

He went on to say, “Addressing the underlying costs of health care will require some difficult choices, but consumers and our health care system cannot afford to wait.”

OIC Communications Manager Aaron VanTuyl explained why prices are going up.

“In general, we see the costs of care going up and the number of people seeking care increasing – and those are the biggest drivers of rate increases,” he emailed The Center Square. 

Kreidler recently published a report on health care affordability in Washington, which addressed five policy options for state lawmakers to consider that OIC believes could have an impact on rising health care costs. One of the policy recommendations is to pay hospitals a fixed annual amount for care and limit care costs to a set inflation benchmark.

OIC reports enrollment in the state’s benefit exchange went up from about 205,000 in January 2023 to 253,000 in January of this year, but most of those “new” enrollees moved from Apple Health to a qualified health plan through the Washington Health Benefit Exchange.

Apple Health is Washington’s Medicaid program, which as of March, covered about 1.9 million Washington residents, or about one in four Washingtonians. 

That number is going up. As recently reported by Elizabeth New, director of the Center for Healthcare at the Washington Policy Center think tank, members of Washington’s ongoing Universal Health Care Commission are discussing further expansion of, and money for, a Medicaid-like program for low-income adults who are undocumented immigrants.

Unlike Medicaid, the program, called Apple Health Expansion, is shouldered by Washington taxpayers. Medicaid is funded at the state and federal level and is not available for people who entered the country illegally.

According to New, the Washington State Healthcare Authority said $72 million had been allocated for the program and AHE is no longer accepting applicants.

According to the authority’s website, “If you have not applied, you can still complete your application for Apple Health Expansion to be considered if space opens in the program.”

For those covered under the state exchange, subsidies are available to offset monthly premiums, based on income.

Open enrollment begins Nov. 1 and runs through Jan. 15, 2025.

This report was first published by The Center Square Washington.