(The Center Square) – As Washington State sees a surge in its open enrollment for health and dental insurance, leaders from the Washington Health Benefit Exchange (HBE) are advocating for continued state subsidies during the upcoming legislative budget discussions for 2025.
During a work session held on Monday, Ingrid Ulrey, CEO of HBE, shared positive projections with the House Healthcare and Wellness Committee regarding the current enrollment period, which concludes on January 15, 2025. Ulrey noted, ‘We are smack dab in the middle of open enrollment and it’s going incredibly well because both the federal and state supports continue to be in place.’ The HBE anticipates reaching a record of 300,000 individuals covered for the year 2025.
Ulrey emphasized the importance of state subsidies, known as Cascade Care Savings, which help reduce premium costs for participants. With federal tax credits expected to expire at the end of 2025, Ulrey stated, ‘The two subsidy programs I want to talk to you about are critical because they take a gross premium on average in our market of over $600 per month and they make it affordable for many Washingtonians.’ She indicated that approximately 80% of participants benefit from either federal, state subsidies, or both.
During the COVID-19 pandemic, the federal government enhanced tax credits to support individuals with individual health care plans. Ulrey illustrated the impact of losing these credits: ‘If and when Congress lets the tax credit expire, she would be paying $325 per month,’ referring to hypothetical scenarios faced by many enrollees.
Furthermore, she warned of the potential fallout, stating, ‘If it goes away, premiums would go up an average of 72% for 80% of those people covered.’ Ulrey cited independent projections suggesting about 70,000 individuals could lose their coverage due to increased costs, while the state could lose approximately $250 million yearly without federal assistance.
Meanwhile, Elizabeth New from the Washington Policy Center expressed concern about excessive state subsidies for individuals exceeding 400% of the federal poverty line. She asserted, ‘Washington cannot afford and should not afford such generous health insurance subsidies for people who make more than 400% of the federal poverty level.’ New emphasized the necessity not to place the financial burden on taxpayers who are already facing healthcare cost increases.
This discussion of subsidies occurs alongside Washington taxpayers funding an expansion of a Medicaid-like program, known as Apple Health Expansion, aimed at low-income undocumented immigrants. While Medicaid benefits are jointly funded at state and federal levels, this program relies solely on state taxpayer funds, amounting to $72 million as per the Washington State Healthcare Authority.
In summary, while Washington’s health insurance market thrives amid current enrollment efforts, maintaining both federal and state subsidies seems critical to ensuring continued access to affordable care for many residents.
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