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Bill

SB 5767

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

2023-2024 Regular Session Introduced by Noel Frame and 10 co-sponsors

Washington proposes excise tax on highly compensated hospital employee compensation to fund health care access expansion, targeting executive-level wages.

By resolution, reintroduced and retained in present status.
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Bill Summary · SB 5767

Legislative bill overview

SB 5767 proposes an excise tax on annual compensation paid to highly compensated hospital employees in Washington State, with revenue directed toward health care access funding. The bill targets executive and high-earning staff positions within hospital systems to generate dedicated funding for expanded health care services.

Why is this important

Hospital executive compensation has grown substantially while health care access gaps persist in many communities. This bill attempts to address health care funding challenges by taxing a specific revenue source within the health care sector itself, potentially affecting both hospital finances and executive compensation structures statewide.

Potential points of contention

  • Talent recruitment and retention: Hospitals may argue the tax makes it harder to compete for qualified executives, potentially affecting management quality and operational efficiency
  • Cost-shifting concerns: Hospitals could pass tax costs to patients, insurers, or workers through reduced wages elsewhere in their organizations rather than absorbing the expense
  • Definition specificity: The bill's success depends heavily on how "highly compensated" is defined—too broad risks affecting middle management, too narrow limits revenue generation and fairness arguments

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

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