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December UHCC Recap: The answer to skyrocketing costs

By Marcia Stedman 

The December 11th UHCC meeting opened with Chair Vicki Lowe’s land acknowledgment honoring the Nisqually and Squaxin Island tribes, emphasizing connections between historical land loss and current healthcare disparities. This was followed by the adoption of the October meeting minutes and the written public comments received since the previous October meeting.

Strong Public Advocacy for Universal Healthcare

The Public Comments section was expanded from 15 to 35 minutes to accommodate the record number of 17 private citizens as well as members of Health Care for All-Washington and Whole Washington.  

Common themes:

Severe healthcare cost crisis

  • $70/month employer plan replaced by $1200/month ACA marketplace plan when employer plan was cancelled
  • Job loss resulted in a 1600% premium increase
  • Increased care costs due to insurance plan cancellations and provider network limitations

Administrative burden

  • 30-40% of provider time is spent on pre-authorizations vs patient care
  • $2.9 billion spent annually on NCPHI (net cost of private health insurance administration and overhead), not on patient care

International comparisons

  • Turkey emergency care cost: $0
  • Taiwan’s single-payer system has been in place for 30 years with strong public approval

Recommended solutions

  • Pass the Washington Health Trust bill
  • Remove the middlemen from Medicaid administration to save Washington $757 Million - $1.28 Billion annually

Public comments can be heard on the Meeting Video from minute 06:35 through 043:42

Federal Policy Impacts and State Response - Agency Reports from Commission members

  • HR1 implementation will result in 300,000 Washingtonians losing Medicaid coverage, with the Senate blocking bills extending federal subsidies.
  • Joan Altman of the Washington Health Benefit Exchange warned that 15,000 additional people will lose federal tax credits in 2027.
  • Representative Parshley, prime sponsor of single-payer bill HB 1445, characterized HR1 as "deadly" compared to previous budget cuts.
  • The Department of Health, following Secretary Worsham's listening tour, identified four reform pillars: health justice, workforce, public health system, and healthcare system transformation.

Healthcare Cost Crisis and Data Findings presented by Vishal Chaudhry, HCA Chief Data Officer

  • Washington's 2023 healthcare expenditure reached $57 billion (6.6 percent growth), exceeding the 3.2 percent affordability benchmark.  
  • Nearly all market segments exceeded benchmarks:
    • 82 percent of commercial carriers
    • 80 percent of Medicare Advantage carriers.
  • 80% of Medicare providers
  • 63% of commercial providers

Per-member costs increased 30% between 2017-2023, driven primarily by price increases rather than utilization.

  • Annual health care expenditure - $8,000 per person
  • Median Washington wage ~$40,000,
  • This represents 28% of median annual income per person for a four-person household.

A critical gap exists in actual primary care spending at 4 percent versus a 12 percent legislative target, particularly affecting Medicare Advantage plans.

  • Different growth drivers by market:
    • Commercial: hospital outpatient spending
    • Medicare: prescription drug spending
    • Medicaid: prescription drugs and professional fees

 FTAC Update and Future Work

  • Presentation on SB5083: reference-based pricing for PEBB/SEBB in rulemaking stage, implementation January 2027
  • FTAC continuing provider reimbursement work:
    • Guiding principles coming to Commission February 2026
    • Draft straw proposal April 2026
  • Cost driver analysis coming spring 2026 to examine price vs utilization factors by market
  • Commission expanded FTAC from nine to ten members, adding Sarah Huling and Hiroshi Nakano
  • Commission decided to maintain FTAC as advisory resource rather than sunset after completion of finance work

Link to Video

Meeting Materials Here

Next Meetings:

There are two ways to share input:

For FTAC

  • Speak during the designated public comment time at FTAC meetings. Sign up to provide public comment by 5 p.m. the day before the meeting occurs. 
  • Submit written comments at any time.  If you submit your comments less than two weeks before a meeting, they’ll include them in the following meeting’s materials.

For UHCC

  • Speak during the designated public comment time at FTAC meetings. Sign up to provide public comment by 5 p.m. the day before the meeting occurs. 
  • Submite written comments at any time.  If you submit your comments less than two weeks before a meeting, they’ll include them in the following meeting’s materials.

We urge our members to push for a single payer plan in their public comments.

Now Available, the Universal Health Care Commission 2025 Annual Report

ARE YOU INTERESTED IN SERVING ON THE UHCC? 

Currently, there  are two open seats on the Commission, subject to appointment by the Governor. Candidates should have knowledge and experience regarding health care coverage, access, and financing, or other relevant expertise. Apply to Serve here

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