Notice of Introduction for House Bill 2626 - Update: 10 Year Analysis Complete
Office of the Governor / Office of Financial Management sent this bulletin at 02/05/2026 03:39 PM PST
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UPDATE: The 10 year analysis for HB 2626, titled AN ACT Relating to increasing the insurance premium tax on certain health insurance providers, has been completed. The Office of Financial Management has identified this bill as requiring a ten-year
projection of increased cost to the taxpayers or affected fee payers.
Ten-year projection:
|
Fiscal |
Combined Premium Tax |
Dental Premium Tax |
Total |
|
|
|
||||
|
2026 |
$0 |
$0 |
$0 |
|
|
2027 |
$101,378,730 |
$12,976,053 |
$114,354,783 |
|
|
2028 |
$103,406,304 |
$13,235,574 |
$116,641,878 |
|
|
2029 |
$105,474,430 |
$13,500,285 |
$118,974,715 |
|
|
2030 |
$107,583,919 |
$13,770,291 |
$121,354,210 |
|
|
2031 |
$109,735,597 |
$14,045,697 |
$123,781,294 |
|
|
2032 |
$111,930,309 |
$14,326,611 |
$126,256,920 |
|
|
2033 |
$114,168,915 |
$14,613,143 |
$128,782,058 |
|
|
2034 |
$116,452,294 |
$14,905,406 |
$131,357,700 |
|
|
2035 |
$118,781,340 |
$15,203,514 |
$133,984,854 |
|
|
|
||||
|
Total: |
$988,911,838 |
$126,576,574 |
$1,115,488,412 |
|
Office of Insurance Commissioner:
Striking Section 1 (6) would eliminate a premium tax exemption pertaining to dental insurance coverage. This exemption removal would result in an annual increase of $12,976,052.62 in premium tax revenue in FY2027. Anticipated growth rates from the Economic and Revenue Forecast Council (ERFC) would need to be considered to estimate annual increases to premium tax revenue in FY2028 and thereafter.
Section 1 (2) bill would also increase the premium tax rate on certain health insurers by one percent. An additional $101,378,729.65 in premium tax revenue would be collected in FY2027. Anticipated growth rates from the ERFC would need to be considered to estimate annual increases to premium tax revenue in FY2028 and thereafter.
Section 2 would create a new one percent premium tax on disability insurers and group stop loss insurers equal to the total amount of all premiums and prepayments for health care services collected or received by these entities multiplied by one percent. .
Regarding Section 2, the OIC would need to determine the necessary amendments to tax forms as well as appropriate metrics for disability insurers within the agency’s ORCA tax collection software. Currently, the projected cash receipts from these activities are indeterminate.
Ten-year projection prepared in consultation with the following agencies:
Office of Insurance Commissioner
Bill sponsors and contact information:
Representative Lisa Parshley, Prime Sponsor
Democrat
(360) 786-7992
Lisa.Parshley@leg.wa.gov
Representative Shaun Scott
Democrat
(360) 786-7920
Shaun.Scott@leg.wa.gov
Representative Nicole Macri
Democrat
(360) 786-7826
nicole.macri@leg.wa.gov
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp