This bill adds a new section to chapter 48.43 RCW requiring the commissioner to determine by October 1, 2026 whether a Washington-domiciled nonprofit health carrier's surplus is "excessive." "Excessive surplus" is defined as the amount by which the carrier's surplus, as reported on its 2025 annual statement, exceeds 100 times the minimum net worth level referenced in RCW 48.44.037(1)(a). If the commissioner finds a surplus excessive, the carrier must pay 10 percent of the excessive amount to the commissioner's office within 90 days for deposit into the state health care affordability account (RCW 43.71.130) to administer the premium assistance program (RCW 43.71.110), unless the payment is reduced under the section. The bill creates a procedural mechanism for carriers to seek a reduction: a carrier may request a hearing within 30 days of the determination, and hearings are to be conducted under chapter 34.05 RCW. The commissioner may reduce the required payment only if the carrier presents clear and compelling evidence that the payment would render the carrier financially impaired under Washington law or the law of any other state where it is authorized to do business. The commissioner is authorized to adopt rules to implement the new section. Affected entities include the commissioner and the commissioner's office, Washington-domiciled nonprofit health carriers that offer plans to Washington residents (excluding health maintenance organizations defined in RCW 48.46.020), the state health care affordability account, and the premium assistance program. The bill text provided does not state the numeric value of the minimum net worth level in RCW 48.44.037(1)(a), does not specify the commissioner's official title, and does not include further details about the health care affordability account, the premium assistance program, calculation specifics, or enforcement mechanisms beyond the required payment and hearing right.

If enacted, Washington-domiciled nonprofit health insurers (other than HMOs) that report their 2025 annual financials could face a new cost: the insurance commissioner must decide by October 1, 2026 whether any carrier’s surplus exceeds a set multiple of the statutory minimum, and if so the carrier would likely have to send 10 percent of that excess to the state within 90 days. That means affected carriers may need to pay a one-time (based on 2025 statements) transfer equal to 10 percent of the identified excess unless they quickly win a hearing showing the payment would make them financially impaired; the standard to reduce the payment is high, so many carriers will have limited options to avoid payment. The commissioner’s office will need to review 2025 filings, make determinations, handle payments, and run any hearings and rulemaking, while the state health care affordability account and the premium assistance program would likely receive new funding from those payments. Important details are missing here: the actual numeric minimum net worth used to calculate the threshold and whether this is intended as a one-time or recurring review beyond 2025 are not specified in the provided text.