(1) In addition to any other taxes or other charges imposed under this chapter, each health carrier subject to tax under RCW 48.14.020 or 48.14.0201 shall, on or before the first day of March of each year pay to the state treasurer through the commissioner's office an annual coverage assessment. The assessment for the first year equals $0.82 per coverage month in the prior calendar year, and the assessment, annually thereafter, equals $0.165 per coverage month in the prior calendar year. The initial assessment imposed under this subsection is due and payable on or before March 1, 2027.
(2) Each health carrier subject to the assessment under this section shall file with the commissioner, on or before the first day of March of each year, an annual coverage month assessment statement indicating the number of coverage months associated with premiums or prepayments for health care services subject to tax under RCW 48.14.020 or 48.14.0201, in a form and manner required by the commissioner. The statement under this subsection is in addition to the statement required under RCW 48.14.030.
(3) Any health carrier, failing to file its annual coverage month assessment statement under subsection (2) of this section and pay the assessment by the last day of the month in which the assessment becomes due shall be assessed a penalty of five percent of the amount of the assessment. If the assessment is not paid within 45 days after the due date, the health carrier will be assessed a total penalty of 10 percent of the amount of the assessment. If the assessment is not paid within 60 days of the due date, the health carrier will be assessed a total penalty of 20 percent of the amount of the assessment. The assessment may be collected by distraint, and the penalty may be recovered by any action instituted by the commissioner in any court of competent jurisdiction. The amount of any penalty collected must be paid to the state treasurer and credited to the abortion savings account created under RCW 43.70.867.
(4) In addition to the penalties set forth in subsection (3) of this section, interest shall accrue on the amount of the unpaid assessment at the maximum legal rate of interest permitted under RCW 19.52.020 commencing 61 days after the assessment is due until paid.
(5) The commissioner may revoke the certificate of authority or registration of any delinquent health carrier, and the certificate of authority or registration may not be reissued until all assessments, interest, and penalties imposed under this section have been fully paid and the health carrier has otherwise qualified for the certificate of authority or registration.
(6) In the event that any health carrier has paid to the commissioner any assessment under this section in error or in excess of that which it is lawfully obligated to pay, the commissioner shall upon written request make a refund thereof. A health carrier may only request a refund of assessments within six years of the end of the calendar year for which the assessments are owed. Refunds may be made either by crediting the amount toward payment of taxes, assessments, or other charges due or to become due from such health carrier, or by making a cash refund.
(7) All revenues collected under this section must be deposited in the abortion savings account created under RCW 43.70.867.
(8) The assessment required under this section must be borne solely by the health carrier and may not be passed through to enrollees in premiums, rates, plan design, or otherwise, unless the commissioner determines that to do so would create a significant risk of carrier insolvency or consumer harm.
(9) A health carrier shall demonstrate their compliance with this section through the rate filing review process of the commissioner, as directed by the commissioner. The commissioner may also adopt rules to implement this section.
(10) For the purpose of this section:
(a) "Coverage month" means each month of coverage under an insurance policy or each month of prepayment for health care services where premiums or prepayments are subject to tax under RCW 48.14.020 or 48.14.0201, not including coverage for health care services covered under chapter 74.09 RCW and rendered by licensed providers on a prepaid capitated basis and that meets the requirements of section 1903(m)(1)(A) of Title XIX of the federal social security act or federal demonstration waivers granted under section 1115(a) of Title XI of the federal social security act.
(b) "Health carrier" means any carrier offering health plans on the health benefit exchange under chapter 43.71 RCW beginning in plan year 2026, not including any carrier offering dental only or vision only plans.
[ 2026 c 228 s 1.]