When Obamacare launched in 2014, the WA State Healthcare Exchange, or the Healthplan Finder Program, began.  Now, for the second time in 3 years, customers are finding sticker shock.

   A Huge Premium Rate Hike Planned for 2027

 According to information released by the Office of the WA State Insurance Commissioner, on average, the 12 companies who were approved to sell plans on the Exchange will see a total (across the board) average increase of 22.2 percent premium jump.   

According to The Office,  the Insurance Commissioner reviews all healthcare companies who wish to sell plans on the Exchange, and elsewhere to WA residents.  If it’s insurance-related of any kind, it has to be approved by the state.

  Rising Costs and Healthcare Woes to Blame for the Hikes

Commissioner Patty Kuderer said the companies asked for the hikes because of an “increase in the basic costs of health care and more robust health care needs among the people covered by individual health plans.”

According to the Insurance Commissioners Office, these are the four primary cost drivers:

• “Healthcare organizations are charging more for services and prescription drugs.
• Members are using more healthcare services and shifting towards higher-cost services. 
• People who have left, or are expected to leave, the market tend to be healthier than those who keep their coverage. This leads to higher average health care needs.
• The expiration of the Enhanced Premium Tax Credits makes coverage less affordable, which prompts healthier people — those less likely to need health services — to drop their coverage. Losing these members raises the average costs of covering those who stay.”

  Obamacare Was Supposed to be More “Affordable”

Years ago when it was being implemented it was supposed to be cheaper, hence the name the Affordable Care Act.  Not so much any more.   An estimated 281,000 residents purchased insurance through the Exchange last year, but over the years that number was much higher.

After court rulings did away with the unconstitutional and illegal requirements that people HAD to carry health insurance or be penalized, we saw thousands either drop it, or pursue care through their work…or other private insuance.

 By law, the Insurance Commissioner is required to approve the changes if healthcare companies can accurately justify why costs are going up.

The picture below is from the WA Insurance Commissioner’s website, and shows the “state”  healthplans sold in WA, and their expected costs and increases.

WA Insurance Commissioners Website–premium jumps