Increasing temporarily insurance premium taxes on insurers to fund health insurance premium assistance.

HB 2745 temporarily increases the insurance premium tax rate for Washington insurers to fund health insurance premium assistance. For 2026, the tax rises to 2.75% (from a base 2.0%), and for 2027 onward, it remains at 2.0%. The portion of the tax exceeding 2% must be deposited into the state health care affordability account to support a program helping residents pay health insurance premiums. The bill prohibits insurers from passing this tax increase to consumers through higher premiums or rates, unless the insurance commissioner approves it to prevent carrier insolvency or consumer harm.