Washington residents will face a 10.7% average increase in health insurance premiums for 2025, following a 9% rise in 2024. This marks a continuation of annual hikes since 2022, although the new rate is lower than the requested 11.3% increase. Insurance Commissioner Mike Kreidler attributes the rise to increased service usage and delivery costs, with nearly 260,000 residents enrolled in individual market plans as of July 2024. Meanwhile, U.S. employers anticipate a 5.8% increase in health insurance costs in 2025, driven by higher medical service costs and utilization, marking the third consecutive year of over 5% increases. The ongoing shortage of healthcare workers and rising spending on behavioral health and specialty drugs are significant factors in these cost hikes. Employers plan to implement cost-management strategies, with smaller companies facing the steepest increases, potentially reaching 9% without intervention.