Washington’s Affordable Care Act marketplace just took a major hit, with roughly 36,500 fewer people enrolled this year after enhanced federal premium tax credits expired. When those extra subsidies vanished, many households suddenly faced steep new monthly bills and had to make tough calls - pay hundreds more for coverage or roll the dice without insurance. State leaders scrambled to plug the hole with one-time funding, but they are already warning that the money is a temporary cushion, not a long-term solution.
Exchange Says Enrollment Drop Was Unprecedented
The Washington Health Benefit Exchange reports that nearly 250,000 Washingtonians selected or re-enrolled in a qualified health plan for 2026, a drop of about 13 percent from more than 286,500 the year before. According to the Washington Health Benefit Exchange, roughly 40,000 fewer people signed up during open enrollment, and later payment confirmations showed additional losses on top of that. The agency said navigators and state-funded mitigation efforts kept what could have been a much steeper collapse in marketplace participation from getting worse.
Local reporting shows rural counties were hit especially hard, with several areas losing a larger share of people in qualified plans than their urban counterparts. As The Olympian detailed, many residents saw monthly premiums double or even triple once the enhanced federal credits disappeared, and some simply walked away from coverage altogether.
State Mitigation and the $55 Million Cushion
The Exchange’s implementation guidance notes that Washington’s State Premium Assistance program is currently supported by an annual appropriation of about $55 million, including roughly $5 million that depends on approval of a federal 1332 waiver. The Washington Health Benefit Exchange directs staff to track available funds month by month and to pause new premium assistance if it appears the appropriation could be exhausted.
Regional coverage has found that this state aid reached more than 118,000 Washington Healthplanfinder customers this year, up from about 115,000 last year. As reported by OPB, officials have been blunt that the assistance "won’t be sustainable beyond this year" if federal policies stay as they are.
National Picture and What’s at Stake
Policy analysts warned well in advance that letting the enhanced premium tax credits expire at the end of 2025 would knock down enrollment nationwide and could leave millions of people without insurance if Congress did not intervene. Modeling from the Urban Institute and other researchers pointed to the loss of those subsidies as the main driver behind lower sign-ups during the 2026 enrollment cycle.
On May 7, Gov. Bob Ferguson took to Facebook to underscore how many Washingtonians are now staring down sharp premium hikes and to highlight the state budget’s $55 million allocation for extra assistance. In his Facebook post, Ferguson framed the state money as stopgap mitigation and urged federal lawmakers to restore broader subsidies.
What to Watch and Where to Get Help
State officials say they will keep a close eye on payments and enrollment over the coming months. Under current policy language, the Exchange can pause new premium assistance if the funding pool starts running low. Customers who buy coverage through the marketplace are urged to log into their Washington Healthplanfinder accounts, compare plan options carefully, and reach out to local navigators or brokers for help sorting through costs and any available state support.
