For the third year in a row, Washington insurance companies requested a double-digit rate increase for their individual health plans, reviving worries that the cost of coverage is becoming untenable.

Health insurers are asking the state insurance commissioner to approve an average rate increase of 22.4% for individual plans in 2027. Rates are the base cost of health coverage, and they determine the premiums that people pay.

This seems quite significant," said Matt McGough, policy analyst at KFF, a research organization that focuses on the healthcare system.

Health insurers in Washington received approval for an average rate increase of 21% for 2026, slightly lower than the average requested increase for next year. However, McGough emphasized that the numbers are still preliminary.

Thirteen health insurance companies will sell plans in Washington's individual market next year. Their requested increases range from 8.6% to as high as 27.8%.

If approved, the increases will affect over 280,000 people who get coverage through individual plans.

"You could see a few more people drop out of the market," said Aaron VanTuyl, communications and media manager for the state Insurance Commissioner.

People typically buy individual health plans if they can't get coverage through their employers, or if they don't qualify for public insurance programs like Medicare. Many are self-employed or unemployed.

Insurance companies submit rate change requests every year to the OIC, which then reviews whether or not the requests are mathematically sound. If the requested increases are justified, the OIC is legally required to approve them.

VanTuyl said that insurers cited many reasons for their rate increase requests, including rising healthcare costs and an increase in people using medical services.

Another notable change: Last year saw the expiration of a major tax credit program that previously helped thousands of Washington households afford their own health insurance. The state health insurance exchange estimated that the tax credits helped enrollees save $1,330 per year on average. Since then, enrollment in individual health plans has dropped by almost 13% across the state.

Those who chose to forego insurance tend to be healthier and thus more willing to gamble on not getting sick, said VanTuyl, while those who remained tend to have higher healthcare costs, which could have then pushed rates even higher.

The prospect of insurance hikes has customers worried, even as they won't take effect until seven months from now.

"Double digit premium increases present an unaffordable reality for Washington consumers," wrote Rod Russell from Spokane in a public comment submitted to the OIC. "These premium spikes force everyday families and small businesses to choose between essential survival needs and health insurance.

The OIC is scheduled to announce approved rate increases around Labor Day.

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