by Amber Ulvenes, WCAAP legislative liason
The 2025 legislative session officially adjourned on time on Sunday, April 27 following the passage of the biennial state Operating, Capital, and Transportation budgets. The session was filled with both exciting wins for Washington’s children and youth and disappointing outcomes on some of WCAAP’s priorities.
The legislature dealt with a staggering deficit in the Operating Budget, making roughly $6 billion in cuts and $9 billion in new revenue over the next four years.
Governor approval is the next step—Gov. Ferguson has until May 17 to sign or veto the budget. Notably, the Governor has authority to veto specific sections or subsections, allowing specific budget items to be rejected without striking down the entire bill. Be sure to check Developments next month to confirm that items of interest came out as expected.
Legislative Wins
The top concern for the Chapter in the 2025 session was Medicaid coverage for kids, for both reimbursement rates and the integrity of the program. High expectations during the last interim quickly ran into the dual complications of a horrible state budget situation and a new presidential administration that destabilized federal funding for public programs. With a tremendous advocacy effort, current enhanced rates were maintained in the final state budget.
On another optimistic note for Medicaid rates, HB 1392, creating the Medicaid Access Program, passed the legislature and is awaiting the Governor’s signature. Championed by the WA State Medical Association, this bill would tax health insurance companies to create a state fund that would receive federal match. The resulting largesse would increase Medicaid professional services rates to equivalent Medicare levels. The complicating factor is that this strategy needs federal approval before it can be implemented.
Other budget victories include:
- Community Health Worker Medicaid reimbursement was funded, so current grant programs will transition to payment by code this year.
- The Chapter worked with the Academy of Family Physicians and the Washington Association of Community Health to secure a proviso to direct the Health Care Authority to develop a Value-Based Payment arrangement with our organizations.
- Aged, Blind, and Disabled (ABD) Medicaid coverage was facing a move out of managed care, and advocates collectively succeeded in preserving that coverage.
Aside from budget wins, WCAAP championed several successful policy items:
- HB 1163: Requiring a permit to purchase firearms finally passed into law!
- HB 1531: Preserving the ability of public officials to address communicable diseases was signed into law!
- HB 1971: Prescription hormone therapy is now allowed in 12-month increments!
- SB 5632: Protecting the confidentiality of records and information that may be relevant to another state’s enforcement of its laws is awaiting the Governor’s signature. This is an extension of the Shield Law that passed in Washington state.
Legislative Losses
Such a difficult session did not come without its harms, however. Multiple tax increases did pass the legislature, though the Chapter was most concerned about changes in the B&O tax. The result is that businesses with over $5 million in gross income will see their B&O tax rate go from 1.75% to 2.1% plus a 0.5% surcharge on B&O taxable income over $250 million. Several health care organizations worked together in an attempt to secure an exemption or reduction for health care providers but were not successful.
The legislature also reduced payments to Managed Care Organizations by 1% across the board for medical and behavioral health services. The MCOs may choose to pass that along and, in some cases, are contractually obligated to do so.
WCCAP did have a couple of important support items that did not make it through session:
- The flavored nicotine ban met its demise. Taxing equity for synthetic nicotine products, such as Zyn nicotine pouches, did pass, however.
- Extension of firearm open carry restrictions to additional sensitive places didn’t make it.
A Big Thank You… To You!
All that we accomplished this session could not have been done without the time and support of the WCAAP community. From the over 130 adovcates that attended our lobby day in Olympia to the hundreds of actions taken to the engagement on our Legislative Committee to reading our weekly Advocacy Updates—we couldn’t do it without you. Thank you for all you do for WCAAP and Washington’s children every day. We look forward to more exciting wins on the horizon in 2026.