A common concern I hear at town halls and meetings is the rising cost of health care. There are a lot of reasons why health care costs are on the rise including, the Democrat majority in the Washington state Legislature enacting tax increases affecting health care facilities and hospitals as part of the 2025–27 budget.
💸 Key Taxes That Impact Health Care
- Business & Occupation (B&O) Tax Hikes
- House Bill 2081 raised B&O tax rates on businesses (including hospitals and physician groups) with large revenues. Some providers face rate increases of up to 40% since 2019.
- Estimates suggest that larger hospitals could pay an additional $110–130 million per year from the B&O increase.
- Insurance Premium Tax
- House Bill 1392, part of the budget package, includes new taxes on health insurance premiums. The tax imposed on premiums raises costs across the sector by increasing the cost of health insurance.
📊 State vs. Nation: Health Care Cost Metrics
1. Cost of Health Index
- Washington scores 116.4, compared to the national baseline of 100 — meaning health care costs about 16% higher than the U.S. average.
Conclusion
The Democrat majority in the Washington state Legislature increased taxes this year on health care facilities and health insurance premiums by imposing taxes on both facilities and consumers.