Proposed Taxes Could Increase Healthcare Costs

Last month, Umar Farooq, Executive Vice President of Healthcare Services at Premera Blue Cross wrote an op-ed in the Everett Herald on the proposed tax changes in Washington state.

What the article is about

Lawmakers in Olympia are considering several new tax proposals—many aimed at health care—that could increase costs for families, employers, and health care organizations. The article explains how these taxes would flow through the system, raising premiums, slowing wage growth, and making coverage less affordable for the more than half of Washington residents who get insurance through their employers.

It also outlines the already high tax burden on Washington’s health care sector and warns that adding more taxes during an inflationary period could hurt the state’s competitiveness, job growth, and ability to attract talent and investment.

Why it matters

• Health care is already costly, and many Washingtonians delay care because of what they must prioritize in their monthly budgets.
• Employers—especially small businesses—would feel rising costs quickly through higher premiums and limited wage flexibility.
• New taxes on health care don’t stay isolated; they ripple through the entire economy, raising costs of goods and services.
• The unpredictability and rapid pace of tax proposals create instability for organizations making long-term financial and hiring decisions.
• Higher health care costs may influence whether companies choose to grow or invest in Washington.

Read the full op-ed.