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Bill

HB 1560

Funding health care access by imposing an excise tax on the annual compensation paid to certain highly compensated hospital employees.

2025-2026 Regular Session Introduced by Liz Berry and 19 co-sponsors

Washington bill taxes highly compensated hospital employee compensation to fund health care access programs, raising revenue from executive pay.

First reading, referred to Finance.
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Bill Summary · HB 1560

Legislative bill overview

HB 1560 proposes imposing an excise tax on annual compensation paid to highly compensated hospital employees in Washington state. The revenue generated from this tax would be directed toward funding health care access programs. The bill was recently referred to the Finance Committee for consideration.

Why is this important

This bill addresses two policy concerns simultaneously: expanding health care access funding while targeting executive compensation in the hospital sector. The outcome could affect hospital employment practices, operational costs, and the availability of funds for patient care initiatives across Washington's health system.

Potential points of contention

  • Definition of "highly compensated": Determining the compensation threshold that triggers the tax will significantly impact how many employees and institutions are affected, and whether it captures intended targets without unintended consequences
  • Business competitiveness and recruitment: Hospitals may argue the tax makes it harder to recruit and retain top medical talent, potentially driving skilled professionals to other states
  • Revenue adequacy vs. unintended costs: Questions remain about whether tax revenue will meaningfully fund health care access or whether compliance and administrative costs will offset benefits

Compiled from official sources — confirm details with the bill’s official record.

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