Beginning this Saturday, residents of Washington who purchase their health insurance through the state’s online marketplace will be able to enrol in or amend their coverage for the coming year.
However, this year’s open enrolment period coincides with a prolonged political stalemate in Washington, D.C., where Congress remains divided over the fate of federal subsidies — or tax credits — that enable millions of Americans to afford health insurance under the Affordable Care Act (ACA).
These enhanced tax credits, first introduced during the COVID-19 pandemic, are due to expire at the end of this year unless Congress votes to extend them. Democrats have refused to conclude the ongoing federal government shutdown without Republican consent to continue the subsidies.
Premiums Rise as Subsidies Remain in Limbo
Premiums for individual insurance plans purchased through the Washington Health Benefit Exchange are set to rise by an average of 21% in 2026 — a sharp increase partly linked to the anticipated loss of federal tax credits.
The hike mirrors similar increases across the country; by comparison, Washington’s average rate increase last year was 10.7%.
According to the Office of the Insurance Commissioner, if the federal tax credits were renewed, this year’s premium increases would likely be 6–7% lower.
At present, however, it remains unclear how any last-minute decision by Congress to extend the credits might impact the marketplace now that open enrolment is underway.
Ingrid Ulrey, Chief Executive Officer of the Washington Health Benefit Exchange, said last week that her team stands ready to respond quickly if the subsidies are reinstated.
“If Congress takes action, we are committed to delivering that relief to our customers as swiftly as possible,” Ulrey stated.
Who Depends on the Exchange?
Nearly 300,000 residents of Washington currently obtain their insurance through the exchange, which serves individuals without access to employer-sponsored health plans or public coverage such as Medicaid.
Roughly three-quarters of these enrollees receive federal tax credits, which reduce their annual premiums by an average of $1,330. For older residents, the savings are even greater — exceeding $1,900 per year.
Without these credits, however, premiums in certain regions of the state — particularly in rural eastern Washington — could double, according to a report from U.S. Senator Maria Cantwell (D-Wash.).
The Risk of Losing Coverage
State officials estimate that as many as 80,000 residents could forgo health insurance if the tax credits lapse. Washington’s uninsured rate had been steadily improving for years, reaching 4.8% in 2023, but experts now fear those gains may be reversed.
“That means higher costs and greater strain on our healthcare system as people delay preventive care,” warned State Insurance Commissioner Patty Kuderer on Thursday. “These effects will be felt across Washington, but rural communities will be hit hardest.”
Those who give up their coverage tend to be healthier individuals, leaving a less healthy insurance pool behind — a dynamic that typically drives premiums even higher for those who remain insured.
State Measures to Lessen the Impact
Despite the federal uncertainty, Washington continues to provide limited state-funded support to help residents afford health coverage.
The Cascade Care Savings programme, launched in 2023, offers premium assistance to individuals earning up to 250% of the federal poverty level, currently benefiting nearly 100,000 residents.
To compensate for the potential loss of federal funding, the exchange has requested $130 million per year in state funds to expand Cascade Care Savings — a proposal requiring legislative approval in the next session.
Key Enrolment Dates
Open enrolment runs from 1 November through 15 January. Those wishing for coverage to begin on 1 January must enrol by 15 December. Applicants who sign up after that date will see their coverage start on 1 February.
Existing policyholders will be automatically renewed, though they are encouraged to review and compare plans to ensure the best alignment with their financial and healthcare needs.
A State Waiting for Answers
As the open enrolment window opens, Washingtonians face a period of anxious uncertainty. With premiums climbing and federal assistance in question, thousands may soon find themselves priced out of essential healthcare coverage.
“Every week of inaction in Congress brings us closer to people losing access to care,” said one health policy analyst. “These subsidies aren’t just figures in a budget — they represent the difference between being insured and going without coverage.”
The coming weeks may prove pivotal, not only for Washington but for the broader affordability of healthcare across the United States.