Another 22% Rate Request Adds to Washington’s Health Insurance Cost Pressure

Washington employers are facing another warning sign on health care costs.

In May 2026, the Washington Office of the Insurance Commissioner announced that 13 health insurers requested an average 22.4% rate increase for the 2027 individual health insurance market. These are not final rates. The OIC will review the filings and complete its review before open enrollment begins. And these rates are for the individual market, however, this points to the continuing trend of healthcare costs.

Last year’s pattern is hard to ignore.

In May 2025, insurers requested an average 21.2% rate change for Washington’s 2026 individual market. The final approved average later came in at – wait for it – 21%. That means the early request and the final approved average were nearly identical across the market.

This year’s 22.4% request is also on top of what Washington consumers already experienced heading into 2026. Individual market filings reflect the same underlying health care cost pressures that affect group coverage too: rising medical costs, higher prescription drug spending, increased use of services, provider pricing, and overall cost-of-care pressure.

That broader trend is already showing up in employer coverage.

Milliman’s 2026 Medical Index shows employer-sponsored health care costs continuing to climb, with the average person’s cost rising 7.9% from 2025 to 2026. For a family of four, that adds up to $37,824 in total annual health care costs. Milliman points to outpatient facility care and pharmacy as the largest contributors to the increase.

Mercer found that employer-sponsored health insurance costs rose 6.0% in 2025, with another 6.7% increase expected in 2026. PwC also projects continued medical cost pressure in the group market, pointing to pharmacy spending, behavioral health use, provider costs, and broader cost-of-care pressure.

For small businesses, this is the practical problem: health benefits are harder to afford, but they are also harder to go without. Employees still need coverage. Employers still need to compete for talent. And everyone needs a simpler way to get care before small problems turn into bigger, more expensive ones.

Enter: BHT’s innovative $0 care benefit…

In one sense, Nice Healthcare is icing on the cake. Yes, “business as usual” BHT gives Washington small and mid-sized employers access to group purchasing power, a wide selection of plan options, consolidated billing, one place for enrollment across medical and other benefits, and real support along the way…

But Nice is also a game changer – included by BHT for no additional cost with most plan designs.

Nice gives employees and dependents a $0 first stop for everyday care. Nice offers virtual care, in-home care in many areas, primary care, chronic condition support, virtual mental health, virtual physical therapy, labs, X-rays in many cases, and access to 550+ common medications at $0 when prescribed by Nice.

No copays, no bills, no fees of any kind as employees use Nice.

And affordable care is not only about the deductible & copays. It is also about what happens when an employee needs care. Can they get care quickly? Do they know where to start? Can they avoid missing half a day of work for a routine visit? Can they get common medications without another bill?

Rising health care costs are not going away in 2027. The latest 22.4% request is another reminder that employers should not wait for renewal season to think about their benefits strategy.

If you are a Washington small business, talk to your broker about Business Health Trust. Ask which plans include Nice Healthcare. Ask how BHT can help you compare options, simplify administration, and give employees a benefit they can actually use.

No broker? BHT can help you get started.