Health insurance by Washington State Pool

From the 2024 DOR Tax Exemption Study

48.14.022 - Health insurance by Washington State Pool Description Carriers that receive premiums and prepayments from plan enrollees for health coverage provided under the Washington State Health Insurance Pool under Chapter 48.41 RCW are exempt from insurance premiums tax on those amounts. In addition, carriers, healthcare service contractors, and HMOs may deduct assessments paid to the Washington State Health Insurance Pool from their taxable premiums. Any unused portion of the deduction can be carried forward and used in successive years until the deduction is exhausted. Purpose To reduce the cost of providing health insurance to persons otherwise unable to obtain coverage because they may be considered high risk. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.418 $0.427 $0.435 $0.443 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. However, this could cause exemption insurers to pass the amount of the assessment on to their regular policyholders and make health insurance more expensive for the general population. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full