Fee slashed for Washington insurers

Washington’s health insurance exchange is cutting a fee charged to insurers in half, a move that could knock a few dollars off the cost of individual health premiums.

The Washington Health Benefit Exchange announced Thursday it will cut the monthly carrier fee from $7.46 per patient to $3.46 for all 2019 health plans purchased on Washington Healthplanfinder.

The fee makes up about 15 percent of the exchange’s revenue, spokesman Ben Spradling said. Officials were able to cut it because the record number of people who signed up for an exchange plan in 2018 led to them receiving more revenue from taxes and other sources, and that trend is expected to continue, he said.

The exchange has also made “operational improvements” to reduce expenses, he said.

Insurers will submit proposed 2019 premium rates to the Office of the Insurance Commissioner in May, and rates are typically certified in September.

In theory, the change will make individual insurance rates slightly cheaper than they otherwise would have been in 2019, though premiums are still likely to rise overall.