ACTION NEEDED
Urge the Office of Health Care Affordability (OHCA) Board to finalize a spending growth target that includes:
- An adjustment to account for population aging
- A meaningful glide path that phases the target down over time
- Further consideration of additional changes to the proposed target and adoption of a one-year target to further evaluate its potential implications
TIMING
Testify during public comments at the April 24 OHCA board meeting. If you plan on testifying, please notify Mark Farouk, vice president, state relations.
RESOURCES
BACKGROUND
In January, OHCA staff released a proposed 3% annual spending growth target for 2025-29; it would be non-enforceable in 2025 but in later years could result in performance improvement plans and financial penalties for hospitals that fail to meet the target. The OHCA board is required to finalize the initial target by June and may do so as early as its April 24 meeting or as late as its May 22 meeting. It is critical that hospital members weigh in on this target, which has wide-ranging ramifications for the health care field. Notably, OHCA’s mandate is twofold: to rein in spending growth, but without sacrificing quality of or access to health care. As proposed, the spending growth target would undoubtedly have a negative impact on health care statewide.
For more information, visit CHA’s dedicated OHCA web page. Questions should be directed to Ben Johnson, vice president, policy, and Mark Farouk, vice president, state relations.