Expired federal subsidies leave fewer Walla Walla residents with health insurance

Many Walla Walla residents are paying higher health insurance premiums after the expiration of enhanced federal subsidies, resulting in about 90 people dropping coverage.

“For households living paycheck to paycheck, even a $100 to $200 monthly increase can make health coverage unaffordable,” said Maggie Nicholson, care coordinator and insurance navigator at the community health organization Blue Mountain Heart to Heart.

Currently, 290,000 Washingtonians are enrolled in a health plan through the Washington Health Benefits Exchange, a 6.15% reduction from the 309,000 people enrolled in 2025. According to annual reports from the statewide organization, Walla Walla County recorded 1,820 signups in 2026, compared with 1,910 signups in 2025.

State and local experts predict enrollment numbers will drop even more, eventually driving up insurance costs and placing financial strain on the health care system.

These changes affect residents who signed up for insurance through Washington Healthplanfinder, operated by the Health Benefits Exchange. The platform is typically used by people who do not qualify for Medicaid because they earn above the eligibility threshold but do not have access to employer-sponsored insurance.

According to the Congressional Budget Office, the subsidies — also called premium tax credits — were established under the Affordable Care Act to lower out-of-pocket premium costs for eligible people.

The enhanced premium tax credits were implemented to broaden eligibility for these federal subsidies, allowing more individuals to qualify, said Exchange Chief Executive Officer Ingrid Ulrey. The subsidies that expired were those enhanced tax credits, she said.

The federal government shut down for 43 days when Democrats demanded an extension of the enhanced tax credits that expired at the end of 2025 and Republicans refused.

After the expiration, Ulrey said, fewer people are now eligible for tax credits, and those who remain eligible receive less financial assistance.

The people most affected, she said, are very low-income noncitizens lawfully living in the country and individuals earning more than $63,000 a year, or couples earning more than $85,000 annually.

These groups are no longer eligible for federal tax credits under the One Big Beautiful Bill Act, Ulrey said, and have seen up to a 2,000% increase in premiums this year, “making it very difficult for them to continue to purchase private health insurance on our market.”

Ulrey said these groups often include people of pre-retirement age who do not yet qualify for Medicare, small business owners, people working in ranching and farming, and “people who have income that’s modest but has bumped up above this (income) cap.”

She said she expects an additional 5% to 10% of people to drop their health coverage in the coming months.

“We are seeing more individuals decline coverage due to affordability concerns,” Nicholson said.

Some clients, she said, who were previously paying very low monthly premiums are now facing costs hundreds of dollars higher.

“Some people are asking, ‘Do I want to pay my rent and utilities, or do I want to have my insurance?’”

As more people drop coverage, insurance costs for those who remain enrolled are likely to increase, Ulrey said.

According to Exchange reports, the average net premium for non-subsidized plans is $640 in 2026, compared with $530 in 2025.

“There’s a principle of insurance — the more people in a risk pool, the more you can spread the risk and keep costs affordable for everyone,” she said.

The first people to drop coverage tend to be those without serious health problems or those willing to take the risk of being uninsured, such as young people. This leaves a smaller, older and sicker risk pool, Ulrey said. As people in that pool file more claims, insurance carriers raise premiums to offset higher liability.

“The bigger a market is, the more affordable it will be,” she said. “The smaller it gets, changes in the risk pool will trigger price increases.”

The next open enrollment period runs from Nov. 1 to Dec. 15, and prices could spike even more, she said.

Uninsured people are more vulnerable to medical debt because they still seek care when they are sick, Ulrey said. Rural hospitals already are struggling with rising costs and are likely to face additional financial strain as they treat more uninsured patients.

Nicholson said uninsured individuals often delay care and may eventually rely on emergency departments, which are required by law to provide care regardless of insurance status or ability to pay.

“At the end of the day, most individuals want health coverage,” Nicholson said. “The challenge we are seeing is affordability.”

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