Get ready: healthcare premiums in Washington State are seeing a major jump in 2025. The average rate increase for individual plans on the WA Health Exchange is 10.7%, while small group plans will rise by an even bigger 11.9%—the highest we’ve seen since 2019.
While these increases are frustrating, knowing the “why” can make it easier to navigate your choices for 2025. Take the time to review your options and consider what makes the most sense for your needs and budget this renewal season. What’s driving these increases, and what does it mean for you?
With the steady upward trend in rates over the past couple of years, it’s clear these increases are not just a one-time issue, but rather part of an ongoing trend.
What’s Causing the 2025 Rate Hike?
- Higher Prices from Healthcare Facilities: Hospitals and other facilities have been asking for contract increases to cover rising costs, and these are passed on to customers through higher premiums.
- Inflation Pressures: While inflation is lower now than it was in 2022, it’s still higher than the Federal Reserve’s target. This pushes up costs for all goods and services, healthcare included.
- Fewer Healthcare Workers: Staffing shortages mean providers are paying more in hiring and overtime costs, which also raises the cost of care.
Why This Is Happening Now
Insurance rates are based on an 18-month lookback period, meaning these 2025 rates reflect what was happening in late 2022 and early 2023. So, even if inflation eases or hiring improves, we may not see the effect on rates right away.
What Can You Do?
If you’re an employer:
- Explore cost-sharing, wellness programs, and plan options can help reduce the impact of these increases.
- Implement a FSA plan to provide cost-savings for employees to balance rising costs
- Encourage employees to stay up to date on their wellness exams and preventative care
For individuals, it’s worth checking for available subsidies on the Health Exchange to help manage costs.
What is BHT Doing?
Beyond advocating with carriers, we are continuously exploring ways to help employees save on healthcare costs while enabling employers to support quality care options that may reduce future expenses and curb premium increases.
We’re working hard to launch a product for 2025 that will:
- Start with virtual care as a first point of contact and integrate in-person visits when needed—all at no copays or coinsurance for patients.
- Provide many commonly prescribed medications at no cost to patients.
This program will be offered alongside a health plan provided by BHT and is designed to help mitigate long-term health plan premium increases. If you are interested in learning more about this program please complete this link.
BHT is also offering no-cost COVID/Flu/RSV tests that employees can use in the comfort of their home to add convenience and reduce their costs. (The average cost of going to Urgent care for these tests would cost an employee ~$60-$75). Request tests for your team here.
Read more on healthcare industry here.