Comment: More taxes on health care won’t make state more affordable

Published 1:30 am Saturday, February 21, 2026

By Umar Farooq / For The Herald

Washington is already one of the most expensive states in the country, and families feel it every month through rising housing costs, groceries, child care, and health care.

Employers feel it as well, as they work to provide competitive wages and benefits in an environment where the basic cost of living keeps climbing.

This is why the volume of tax proposals moving through Olympia this session should give everyone pause, especially proposals that would further raise the cost of health care.

Health care is not a discretionary expense. Yet for too many Washingtonians, it can feel like one. Many already delay or forgo essential care because of what they must weigh against their monthly budgets. New taxes on health care don’t stay confined to balance sheets; they create downstream implications that raise costs for both businesses and consumers.

According to state health coverage data, about 52.3 percent of Washington residents receive insurance through an employer. When the cost of providing care rises, the effects show up quickly: higher premiums, slower wage growth and added financial pressure on both families and small businesses.

The concern is not limited to health care organizations. Employers across Washington, including those represented by the Washington Roundtable and the Association of Washington Business, understand that when health care is more expensive, competitiveness suffers. That includes their ability to retain talent and recruit for the local jobs that anchor communities. If tax policy accelerates cost growth, employers feel it across their operations.

Washington’s health care sector is already one of the most heavily taxed parts of the economy. Legislative changes in the last year increased the taxes our customers shoulder by roughly 17 percent. In 2025, Premera Blue Cross alone paid more than $76 million into the state’s general fund along with another $13 million to other governmental entities. Adding new or expanded taxes on top of this, particularly those that apply broadly to health care services, risks amplifying cost pressures during an already inflationary period.

This matters because health care costs are rising faster than wages. Employers across the state are struggling to maintain comprehensive benefits while keeping coverage affordable for workers. Individuals purchasing insurance on their own are facing similar strains. When policymakers increase the cost of health care as a business input, those increases cascade through the entire system, raising the costs of goods and services throughout the economy. These tax proposals create downstream implications that ultimately work against Washingtonians’ most urgent need: affordability.

The pace and unpredictability of the current tax debate contribute to this challenge. Proposals that are rushed, retroactive, or frequently revised undermine the stability employers rely on. Health care organizations make long-term decisions on clear rules and predictable policy environments. When predictability erodes, so does Washington’s competitiveness.

There are already warning signs. Companies are reassessing whether Washington is the right place to grow or build new operations, and the rising cost of health care coverage is placing increased weight on those decisions. As tax policy drives higher costs, it becomes harder for the state to attract and retain jobs, talent and long-term investment.

This is not an argument against progressive taxation, nor is it an effort to single any industry. It is a call for a more thoughtful, deliberate approach. It is one that acknowledges how cumulative taxes interact and how those interactions affect workers, employers and families.

A better path forward is within reach.

First, lawmakers should pause before advancing new taxes and fully assess their combined inflationary effects, especially in sectors such as health care that touch nearly every household.

Second, policymakers should engage earlier and more consistently with employers, health care leaders and purchasers. These groups can help identify approaches that support state priorities without unintentionally driving up costs.

Finally, Washington needs a longer-term view of affordability and competitiveness. A strong economy depends on policies that promote stability, access and innovation, not policies that make essential services more expensive year after year.

Everyone shares the same goal: a healthier and more affordable Washington. Achieving that goal requires careful policymaking, collaboration and an understanding of how decisions made today shape the economic landscape tomorrow.

Raising the cost of health care is not the answer. Thoughtful, inclusive policy is.

Umar Farooq is executive vice president for healthcare services at Premera Blue Cross.