Bill > SB5808

This bill establishes a new mechanism for managing surplus funds from nonprofit health insurance carriers in Washington state. The legislature first acknowledges that nonprofit health carriers have responsibilities to provide affordable health insurance and contribute to improving residents' health status. Starting in July 2026, these carriers must annually report their surplus to the state insurance commissioner, who will then determine if the surplus is "excessive" - defined as being more than 600 percent of the carrier's risk-based capital (RBC) requirements. If a carrier's surplus is deemed excessive, they will be required to pay 3 percent of that excessive surplus to a state health care affordability account, which will fund a premium assistance program. Carriers can request a hearing to potentially reduce this payment if they can prove the payment would cause financial impairment. The bill includes provisions for the commissioner to adopt rules implementing these requirements and defines key terms like "surplus" and "RBC". Importantly, the bill will take effect on January 1, 2026, giving carriers and regulators time to prepare for the new reporting and potential payment obligations.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5808&Year=2025&Initiative=false