Over the past decade, we have made great strides toward improving access to health care for Washingtonians. The Affordable Care Act expanded Medicaid coverage and created a health insurance marketplace where most people without insurance could finally purchase coverage. Last year, we took another big step forward with the passage of Cascade Care in Washington, the first public option in the country. This established standard health insurance plans to increase consistency between plans and predictability of costs, with the state also developing a plan to bring down the cost of coverage.
However, there are still people throughout our state who do not have access to health insurance. New research released last month showed the number of people without health insurance in Washington increased by 62,00 people in 2018, and enrollment data points to another increase in 2019. Time and again, research shows that more access to health care and investment into prevention and public health leads to better health outcomes.
Public health protects everyone everywhere in Washington. Local public health keeps people safe from disease, contaminated food and water, and during emergencies. A strong public health network helps maintain strong and thriving communities. When people are safe and healthy and live in clean environments, businesses are attracted to the area and bring growth and jobs. These communities are more ready to face emergencies, and better able to take care of everyone, including the most vulnerable, like children, people who are homeless, and the elderly. But our public health system is at risk of fracturing.
Non-profit health insurance company surpluses in Washington have grown dramatically over the past ten years. In 2012, Insurance Commissioner Mike Kreidler expressed alarm about the $2.4 billion surplus of these carriers. Since then, the surplus totals of non-profits have nearly doubled to $4.4 billion. These surplus dollars are not just the cost of doing business, but rather premium dollars that were not spent on claims or revenue that comes from investments. Insurance carriers should carry a certain amount of surplus in case of emergencies. Still, the surplus amounts we see in the non-profit health insurance plans are in significant excess of that buffer.
At the same time, the carriers’ surplus buckets have been growing; the cost to buy insurance has been increasing. Since 2009, average family premiums have increased by 54%, and workers’ contributions have increased by 71% nationwide. So families are paying more and more for health insurance plans, and the coffers of non-profit carriers are getting deeper and deeper.
Non-profit health insurance companies have a responsibility to contribute to the improvement of the overall health status of the residents in the areas in which they operate. It is time for them to meet that responsibility, and they have the dollars needed to do that.
HB 2679 and SB 6451 propose a small percentage of the excess surplus dollars held by health insurance companies will be collected by the state and re-directed into helping Washingtonians buy health insurance coverage and funding our state’s public health system. The financial assistance for purchasing insurance coverage will come in the form of premium subsidies for people who are not otherwise eligible for federal subsidies. Dollars directed toward our public health system will improve the state and local health jurisdictions’ abilities to adequately function, including tracking, responding to, and preventing costly food and water contamination, disease outbreaks, and other public health crises. By bolstering funding for public health and helping more people buy insurance, we can dramatically improve the health of people throughout Washington.
