Washington State Insurance Commissioner Mike Kreidler has released a preliminary look at 2025 health insurance rates, revealing that residents should prepare for another year of rising premiums, though the hikes may be less drastic than in previous years.
The Rate Proposals For the 2025 plan year, 12 insurers have submitted filings for the individual market, requesting an average rate increase of 11.3%. While a double-digit hike is significant, it is a slight decrease from the 13.5% average increase seen in 2024.
In the small employer market, the situation is more varied. Fourteen companies are seeking an average increase of 11.1%, though some specific plans have requested hikes as high as 22%.
Factors Driving the Costs Insurance companies cite several familiar reasons for the continued upward trend in pricing:
- Medical Inflation: The rising cost of providing healthcare services.
- Prescription Drug Costs: The skyrocketing price of specialty medications.
- Increased Utilization: A higher volume of people seeking medical care and procedures.
The Review Process It is important to note that these figures are currently just “proposals.” Commissioner Kreidler’s office will spend the summer reviewing the filings to ensure the requested increases are justified and not excessive. The final, approved rates are expected to be announced in the fall, ahead of the open enrollment period which begins in November.
The “Public Option” Washington’s “Cascade Select” plans—the state’s version of a public option—will continue to be available in 2025. These plans are designed to offer lower deductibles and more predictable costs, and early data suggests their rate increases may be slightly more stable than traditional private plans.
Currently, over 250,000 Washingtonians get their coverage through the state exchange, many of whom receive federal subsidies that help offset these rising monthly premiums.
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