How Much Does Group Health Insurance Cost in Washington? (2027)

By Brandon Hoobler | 05/29/2026

Last reviewed: October 16, 2026. Written by Brandon Hoobler, licensed Washington insurance broker.

There is no flat statewide price, but the best benchmarks are clear. Nationally, employer coverage averaged $9,325 a year for single coverage and $26,993 for family coverage in 2025, according to KFF. For 2027, the nine insurers in Washington’s small-group market have requested increases of 7.91% to 19.99%. Approved rates had not been announced as of October 16, 2026.

Key takeaways

Nine insurers filed 2027 small-group rate requests in Washington, ranging from 7.91% to 19.99%. Seven of the nine asked for double digits.
These are requests, not final rates. For 2026, the Washington Office of the Insurance Commissioner (OIC) approved an average of 12.8%, higher than the 9.5% insurers requested.
The latest national benchmark is the KFF 2025 survey: $9,325 single and $26,993 family per year. Workers paid $1,440 and $6,850 of those totals on average.
Washington’s small-group statutes let insurers vary rates only by geographic area, family size, age and wellness activities. Your group’s health status does not change your fully insured rate.
Your contribution strategy decides how a renewal increase splits between your business and your employees. Model it before you sign anything.
Level-funded plans and ICHRA can lower cost for some groups. They also shift risk or decisions in ways that do not fit every business.
Our help costs you nothing extra. Brokers are paid by the insurance carrier.

The 2027 Washington small-group market

Washington defines a small employer as one that employed an average of 1 to 50 employees in the prior calendar year and has at least one employee on the first day of the plan year. If that is you, your fully insured medical rates come from the small-group market, and the OIC reviews them.

As of October 16, 2026, we found no OIC news release on approved 2027 small-group rates, so the numbers below are requests. The table shows each insurer’s 2027 request next to its approved 2026 change, so you can see the trend.

Insurer	2027 requested	2026 approved
Asuris Northwest Health	17.86%	12.4%
Kaiser Foundation Health Plan of the Northwest	7.91%	6.6%
Kaiser Foundation Health Plan of Washington	8.09%	5.3%
Kaiser Foundation Health Plan of Washington Options	12.39%	13.8%
Premera Blue Cross	19.99%	10.9%
Premera Blue Cross HMO	16.80%	19.2%
Regence BlueCross BlueShield of Oregon	13.81%	7.3%
Regence BlueShield	16.62%	15.4%
UnitedHealthcare Insurance Company	19.87%	15.8%

The 2027 requests come from the OIC’s online rate search, checked October 16, 2026, when all nine were still under review. The 2026 approvals come from the OIC’s November 17, 2025 news release.

A few points stand out:

Seven of the nine 2027 requests are higher than the same insurer’s approved 2026 change.
The simple average of the nine requests is about 14.8%. That is our arithmetic, not an OIC figure, and it is not weighted by enrollment.
Enrollment matters. In the OIC’s 2026 table, the Regence BlueShield change affected 92,295 people and the Premera Blue Cross change affected 51,753. Those two insurers requested 16.62% and 19.99% for 2027, so an average weighted by enrollment could land above the simple average.
Approved rates can come in higher than requested. That happened for 2026, when the OIC approved 12.8% against 9.5% requested after its actuarial review.

In its 2026 release, the OIC said new rates take effect after January 1 as each plan renews. So a group renewing March 1, 2027 would see its new rates on that date.

For context, the OIC approved an average 22.2% increase for 2027 individual plans sold through Washington’s Exchange. Insurers had requested 22.4%. That matters if you are weighing an ICHRA, because employees in an ICHRA buy individual coverage.

National benchmarks from the KFF survey

KFF’s Employer Health Benefits Survey is the standard national benchmark. The 2025 edition, published October 22, 2025, is the latest. The 2026 edition was not yet posted on KFF’s survey page when we checked on October 16, 2026.

KFF 2025 figure	Single coverage	Family coverage
Average annual premium, all firms	$9,325	$26,993
Increase from 2024	5%	6%
Average worker contribution per year	$1,440	$6,850
Worker share of the premium	16%	26%
Average annual premium, firms with 10 to 199 workers	$9,211	$26,054

Two more KFF findings matter for small Washington employers. Workers at firms with 10 to 199 employees paid an average of $8,889 a year toward family coverage, compared with $6,227 at larger firms. And 59% of firms with 10 to 199 workers offer health benefits, compared with 97% of firms with 200 or more.

Deductibles are part of the cost too. For workers with single coverage and a general annual deductible, KFF found the average deductible was $1,886 in 2025. Among covered workers at firms with 10 to 199 employees, 53% were in a plan with a single deductible of $2,000 or more.

For 2027, the Peterson-KFF Health System Tracker reviewed small-group filings nationwide. The median proposed increase across 295 insurers was 14%, and the middle half of insurers fell between 10% and 18%. The median insurer estimate of underlying medical cost trend was 10.8%. Insurers cited rising medical prices and use, specialty drugs, GLP-1 drugs, behavioral health and healthier groups leaving fully insured pools.

Washington’s requests run a little higher than the national middle. The median of the nine Washington requests is 16.62% (our arithmetic), compared with the 14% national median.

What drives a Washington group’s premium

Washington’s small-group rating statutes (RCW 48.21.045 and RCW 48.44.023) say insurers may only vary the adjusted community rate for four things: geographic area, family size, age and wellness activities. Federal rules add guardrails on top. Here is how each piece shows up on your quote.

Employee ages

Age is often the biggest driver. Federal rules cap the spread at 3:1 for adults 21 and older. So an older employee’s rate can be up to three times a younger adult’s rate on the same plan. A group of mostly 30-year-olds and a group of mostly 58-year-olds will get very different quotes on identical plans.

Plans bought through an association work differently. Under RCW 48.21.047, employers that buy through an association aren’t small employers for rating purposes, and the plan isn’t subject to Washington’s small-group rating rules. Ask how your association renewal was priced, and compare it with small-group quotes on the same census. See our guide to association health plans in Washington.

Rating area and county

Washington has nine rating areas under WAC 284-43-6701. King County is Area 1 by itself. Pierce, Thurston and Mason counties form Area 5, South Sound. For a small group, federal rules base the rating area on your principal business address, not on where each employee lives.

Family size and who enrolls

Each enrolled spouse and child adds premium. Your total cost depends on how many employees cover dependents, not just how many employees you have.

Plan level and network

Metal level (bronze, silver, gold) sets how much of the cost the plan pays versus the employee. Washington law says a carrier selling a bronze small-group plan outside the Exchange must also offer silver and gold. Network matters as much as metal level. An HMO or narrower network often prices differently from a broad PPO, so compare the doctors your employees actually use. Our group health insurance page covers plan types in more detail.

Wellness activities

Washington’s statutes mention up to a 20% variance for small employers with qualifying wellness programs. Federal rating rules do not list wellness as a rating factor, so ask each carrier whether any wellness discount applies before you count on it.

What does not change your rate

The OIC says your family’s health does not change what you pay. The OIC also says rates for individual and small-group plans are based on the total claims from all members.

Tobacco use is not one of the four factors listed in Washington’s small-group statutes. Federal rules allow a tobacco factor of up to 1.5:1, and the OIC’s consumer page says some insurers may consider whether you smoke. We confirm how each carrier handles it on your actual quote.

Your employer contribution

Your contribution does not change the premium. It changes who pays it. That split is often the decision that matters most for your budget, and the example later in this guide shows why.

Carrier participation and contribution rules to watch

Not every insurer sells everywhere. The OIC’s small business plan options page lists which counties each insurer serves. The page does not state a plan year, so confirm 2027 availability with the carrier.

In King and Pierce counties, six of the nine insurers appear. They are both Kaiser Foundation Health Plan of Washington companies, both Premera companies, Regence BlueShield and UnitedHealthcare.
In Clark County, the list shows three: Kaiser Foundation Health Plan of the Northwest, Regence BlueCross BlueShield of Oregon and UnitedHealthcare.
UnitedHealthcare is listed statewide. Premera Blue Cross HMO is listed only in King, Spokane, Pierce and Thurston counties.

Participation rules also shape your options. Washington law caps what an insurer can require. The limit is 100% participation for groups with three or fewer eligible employees, and 75% for larger small groups. Ask each carrier how it counts employees who waive because they have other coverage.

The small-group statutes we reviewed do not set a minimum employer contribution. Carriers can set their own, so get each carrier’s current rules in writing. If a group misses those rules, federal law lets an insurer limit its enrollment to a yearly window of November 15 to December 15.

Very small groups face extra paperwork. Since May 1, 2026, Premera has required small groups with 1 or 2 enrolled employees to send a Group Size Attestation and extra tax documents. These are due 60 days before the requested effective date.

If you have close to 50 employees, check your status under federal rules too. The IRS treats you as an applicable large employer if you averaged at least 50 full-time employees, including full-time equivalents, in the prior year. Full-time means at least 30 hours a week or 130 hours a month. Our full-time eligibility calculator can help you sort that out.

Funding options at a glance

The fully insured small-group market is not your only route. Here is a short look at three common options.

Fully insured

You pay a set monthly premium, and the carrier takes the claims risk. Rates are filed with and reviewed by the OIC, and your group’s health does not change your rate. This fits employers who want predictable costs and state rate review. The trade-off is that you share in the whole pool’s cost trend, which is double digits for most 2027 requests. If you are offering coverage for the first time, our page for first-time benefits buyers is a good starting point.

Level-funded

You pay a fixed monthly amount that covers expected claims, administration and stop-loss insurance. Some arrangements return part of any surplus if claims run low. KFF found that 37% of covered workers at firms with 10 to 199 employees were in a level-funded plan in 2025. Peterson-KFF reports that fully insured small-group pools are getting sicker, partly because healthier groups are shifting to level-funded plans. That tells you who level funding tends to suit. A group with high or unpredictable claims may not save, and the contract terms matter. Read our level-funded vs. fully insured comparison before you decide.

ICHRA

With an individual coverage HRA, you give employees a set tax-free allowance for individual health insurance premiums and other qualified medical expenses. Employees must have their own individual plan. HealthCare.gov now calls these CHOICE Arrangements. You choose which employee classes get an offer, and current employees get written notice 90 days before each plan year. ICHRA gives you a fixed budget. The catch for 2027 is cost: Washington’s individual Exchange rates rose an average of 22.2%. Also, an affordable offer makes employees ineligible for premium tax credits. Plan structure has tax consequences, so confirm the setup with your CPA. Our ICHRA page explains how it works.

Illustrative budget: a 20-employee Washington group

This is an illustration, not a quote. The premiums below are round numbers chosen to show the math. Your real rates depend on ages, rating area, carrier, plan and who enrolls.

Assumptions:

20 eligible employees. 18 enroll and 2 waive because they have coverage through a spouse.
13 enroll as employee only, at an assumed average of $850 a month.
5 enroll with family, at an assumed average of $2,400 a month.
The employer pays 80% of the employee-only cost for everyone ($680 a month), plus half of the added cost for dependents.

Line item	Employee only (13)	With family (5)	Group total
Premium per person, per month	$850	$2,400
Employer pays per person, per month	$680	$1,455
Employee pays per person, per month	$170	$945
Total premium per month	$11,050	$12,000	$23,050
Employer cost per year	$106,080	$87,300	$193,380
Employee payroll deductions per year	$26,520	$56,700	$83,220

In this illustration, total annual premium is $276,600. The employer pays about 70% of it, or roughly $10,700 per enrolled employee per year.

Now apply a 15% renewal. We picked 15% only because it sits near the middle of the 2027 requests. Total annual premium rises to about $318,100, an increase of about $41,500.

If you keep the same percentage formula, your share rises by about $29,000 and employees absorb about $12,500.
If you hold your dollar contribution flat, employees absorb the whole $41,500. Their combined deductions jump about 50%, and some may drop coverage.

Neither choice is wrong. It depends on your budget, your hiring market and how your team values the benefit. The point is to decide on purpose, before renewal paperwork is due. Our guide on whether a small business can afford employee benefits walks through more budget questions.

Ways to control cost without guessing

Quote every carrier on the same census. Same employees, same effective date, same contribution formula. Otherwise the comparison misleads you.
Model two or three contribution strategies. Percentage of premium, fixed dollars and a base-plan formula each move costs differently.
Ask about a choice of plans. If a carrier lets you offer more than one plan, set your contribution on a base plan and let employees buy up.
Look at HSA-qualified plans. For 2027, the IRS minimum deductible is $1,750 self-only and $3,500 family. HSA contributions can reach $4,500 and $9,000. Our HSA, FSA and HRA guide explains the differences.
Match the network to your people. A narrower network can cost less. It only helps if your employees’ doctors are in it.
Check affordability if you are near 50. For plan years beginning in 2027, the IRS required contribution percentage is 10.22%. Test your employee costs with our ACA affordability calculator.
Use pre-tax payroll deductions. Employee premium shares can often be paid pre-tax through a pre-tax plan. Confirm the details with your CPA.
Explain the plan to employees. A benefit only helps you hire and keep people if they understand it. We offer on-site group meetings, one-on-one meetings and virtual sessions through our employee education service.
Start early. More options stay open when you have time to compare. Our article on what to do about a large renewal increase has a step-by-step plan.

How Washington Insurance Brokers is paid

We are paid by the insurance carrier you choose. You do not pay us a fee, and our help costs your business nothing extra. That includes quoting Premera, Regence, Kaiser Permanente and other Washington options, plus enrollment and administration on Employee Navigator at no added cost.

You can always ask how we are paid on any plan we show you. We would rather you ask than wonder.

What to send for a real quote

A real quote needs about the same information for a first-time purchase or a renewal review. Send what you have, and we will help with the rest.

Employee census: each employee’s date of birth, home ZIP code, coverage tier (employee only, spouse, children or family) and whether they enroll or waive.
Business details: your principal business address, number of eligible employees and the effective date you want.
Current plan: the Summary of Benefits and Coverage for each plan you offer today.
Renewal notice: your carrier’s renewal letter with the new rates, if you have one.
Contribution rules: what you pay today for employees and for dependents, and your waiting period.
Your goals: a target budget, must-keep doctors or anything employees have complained about.

Use our quote request form or call (206) 653-9636. Brandon Hoobler has worked in insurance since 2009, and we will tell you plainly if your current plan is still the best fit.

Frequently asked questions

What is the average cost of group health insurance per employee in Washington?

No official statewide average per employee is published. The latest national benchmark is KFF’s 2025 survey: $9,325 a year for single coverage and $26,993 for family coverage. Your Washington quote depends on employee ages, rating area, plan and who enrolls.

How much will Washington small-group rates go up in 2027?

Nine insurers requested increases from 7.91% to 19.99%. As of October 16, 2026, approved rates had not been announced. For 2026, the OIC approved 12.8% on average, above the 9.5% requested.

How much does a Washington employer have to contribute?

The Washington small-group statutes we reviewed do not set a minimum employer contribution, but carriers can set their own rules. Under federal rules, a group that misses them may be limited to enrolling between November 15 and December 15. Applicable large employers also face the IRS affordability test, set at 10.22% for 2027 plan years.

Is a small business in Washington required to offer health insurance?

No. The OIC says businesses with 1 to 50 employees are not required to offer health insurance. Federal employer shared responsibility rules can apply once you average at least 50 full-time employees, including full-time equivalents, in the prior year.

Can a business with only two employees get group health insurance?

Yes. The OIC says any business with 1 to 50 employees can buy coverage in the small employer market. Carriers can require 100% participation from groups with three or fewer eligible employees. Some carriers, including Premera, also require extra documentation for groups with 1 or 2 enrolled employees.

Does it cost more to buy through a broker?

No. Washington Insurance Brokers is paid by the insurance carrier, so your business pays nothing extra for our help.

About the author

Written by Brandon Hoobler, founder of Washington Insurance Brokers and a licensed Washington insurance broker (WA OIC #824207, verify a license). He has worked in insurance since 2009 and helps Washington employers with 5 to 500 employees compare group benefits. Questions about your plan? Call (206) 653-9636.

Sources

Posted in Employee Benefits