Increasing the insurance premium tax on certain health insurance providers.

HB 2626 increases Washington State's insurance premium tax for certain health insurance providers. Starting March 1, 2027, it raises the tax rate from 2% to 3% on premiums collected by health maintenance organizations, health care service contractors, and self-funded health plans. A new 1% tax also applies to disability insurers and certain group stop-loss insurers beginning March 1, 2028. Providers must pay these taxes in installments (45% by June 15, 25% by September 15, 25% by December 15) annually, with exemptions for Medicare/Medicaid payments and specific dental services. The bill directly affects these insurers by altering their tax obligations under state law.