Washington Approves 22% ACA Exchange Rate Increase for 2027
Washington's Insurance Commissioner approved a 22.2% average rate increase for health plans sold through the state's ACA exchange, effective January 1, 2027, affecting approximately 250,000 enrollees. The increase follows a 21% hike in 2026 and stems from rising healthcare costs, increased service utilization, and adverse selection after federal tax credits expired, causing healthier enrollees to drop coverage. Open enrollment begins November 1, 2026. The rate changes primarily affect individuals purchasing coverage outside employer-sponsored insurance and Medicaid, including self-employed individuals, early retirees, and small businesses under 50 employees.
The rate increase and enrollment decline signal growing affordability pressures in the individual market that may drive more low-income individuals toward Medicaid eligibility or create coverage gaps for those near but above Medicaid income thresholds.
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