Legislative Updates

Budget and tax landscape:

The Legislature adopted a supplemental operating budget totaling approximately $157.3 billion, including $80.2 billion in the general fund outlook for the 2025–2027 biennium, along with a $16.6 billion transportation budget. The package maintains funding for the Apple Health Dental Program, including both adult and pediatric benefits, and includes $100,000 in FY2027 funding for DentistLink, key outcomes aligned with DDWA and Arcora’s priorities.

The session also included passage of SB 6346, establishing a 9.9% tax on income above $1 million, projected to generate approximately $3.5–$4 billion annually beginning in 2029. The measure followed extended floor debate lasting nearly 25 hours that reflects the state’s broader effort to address long-term budget pressures.

Key legislative activity:

Delta Dental of Washington monitored and engaged on several bills with potential affordability, tax, and market impacts—including proposals that would have increased premium taxes or created new financial uncertainty for nonprofit carriers.

• HB 2626: Would have increased the health carrier premium tax from 2% to 3% and eliminated a tax preference—raising affordability concerns and reducing resources for community investment. Outcome: did not pass.
• HB 2073: Proposed a tax on nonprofit health carrier surplus above a defined threshold; amendments narrowed scope but uncertainty remained. Outcome: did not pass.
• HB 2522: Would have required coverage of preventive dental services without utilization parameters—potentially increasing utilization and cost trends without proven access/outcome gains. Outcome: did not pass.
• HB 2487: Clarified tax treatment for entities subject to both B&O tax and premium tax. Outcome: passed; no material impact to dental benefits environment.
• HB 2442: Expanded local revenue authority, including certain service-based taxes. Outcome: passed; no direct impact identified to date.

Dental workforce:

The Legislature also began early-stage discussions on dental workforce shortages, particularly in hygiene and assisting roles affecting access to care in the state, particularly in WA rural communities. DDWA contributed data and policy concepts focused on expanding education pathways and introducing preventive-focused roles. A work session organized by the Senate Health & Long-Term Care committee marked an initial step, with further stakeholder engagement expected during the interim.