This bill amends RCW 48.14.020 and RCW 48.14.0201 to change how the state premium tax is applied and where certain 2026 premium tax revenues are deposited. For premiums collected during calendar year 2026 the tax rate is temporarily increased to 2.75 percent, with the rate returning to 2.0 percent for calendar year 2027 and thereafter. The portion of the 2026 tax that exceeds 2.0 percent for insurers and for taxpayers defined in RCW 48.14.0201 must be deposited into the state health care affordability account (RCW 43.71.130) and used to fund the premium assistance and cost‑sharing reduction program (RCW 43.71.110). The bill amends existing law rather than creating a standalone new chapter. The bill also modifies procedures and allocations under the premium tax law. Insurers (except title insurers and registered eligible captive insurers) and the taxpayers defined in RCW 48.14.0201 (HMOs, health care service contractors, and self-funded multiple employer welfare arrangements) must pay the premium tax to the state treasurer through the insurance commissioner’s office on or before March 1 each year; those taxpayers must make prepayments during the year on a specified schedule (45% by June 15, 25% by September 15, 25% by December 15). Beginning July 1, 2023, and each July 1 thereafter $7,000,000 (adjusted by the seasonally adjusted CPI‑U) of premium tax monies collected under RCW 48.14.020 must be deposited into the Washington auto theft prevention authority account, and premiums for qualified plans offered through the health benefit exchange are deposited into the health benefit exchange account as provided by existing law. The statute continues to preempt counties, cities, towns, and other municipal subdivisions from imposing excise or privilege taxes on insurers (other than title insurers) and on the taxpayers specified in RCW 48.14.0201. The bill imposes procedural conditions for taxing self‑funded MEWAs in relation to ERISA. Taxes apply to a MEWA only if not preempted by ERISA; the MEWA and the commissioner must seek an advisory opinion from the U.S. Department of Labor or a federal court declaratory ruling on the legality of state premium taxes on the MEWA. If there is no final determination, the MEWA must deposit the taxes into an interest‑bearing escrow account beginning on the earlier of the date the fourth MEWA is certified by the insurance commissioner or April 1, 2006; if a final determination finds the taxes are not preempted by ERISA, escrowed funds must be transferred to the state treasurer. The bill also provides that the portion of taxes imposed under the referenced subsection that exceeds two percent must be borne solely by the taxpayer and may not be passed through to enrollees unless the commissioner finds pass‑through is necessary to avoid carrier insolvency or consumer harm; the commissioner may adopt rules and must annually notify taxpayers by June 1 of prepayment amounts. The document excerpts are incomplete: the text omits portions that define how some taxes are calculated (including the provisions referenced as subsection (2)(b)), full statutory language that was cut off, and the bill’s effective date and any fiscal provisions, so those details are not available here.

If enacted, insurers (other than title insurers and registered eligible captive insurers) and certain health plan entities (HMOs, health care service contractors, and self‑funded MEWAs) will face a higher state premium tax for calendar year 2026 — a one‑year increase to 2.75% — with the amount above 2.0% earmarked for the state health care affordability account to fund premium assistance and cost‑sharing reductions. That change increases 2026 tax costs for those entities, requires annual payment by March 1 (with HMOs, contractors and MEWAs also subject to quarterly prepayment percentages during the year), and continues $7 million (adjusted by CPI‑U) annual deposits to the auto theft prevention account and certain allocations to the health benefit exchange account as previously established. Self‑funded MEWAs face extra procedural and financial uncertainty because the state can tax them only if not preempted by ERISA; MEWAs must seek a U.S. Department of Labor advisory opinion or a federal court ruling and, absent a final determination, must place disputed amounts in an interest‑bearing escrow account until resolved, potentially tying up funds. The law also prevents passing the portion of the 2026 tax above 2.0% through to enrollees unless the insurance commissioner concludes pass‑through is necessary to avoid insolvency, creating potential cash‑flow and pricing constraints for carriers. Key implementation details and the bill’s effective date and broader fiscal impacts are not included in the provided text.