About Affordability
Health care is a basic human need, one that Californians rely on to live, grow, and prosper. Unfortunately, the cost of care has become too high for many working families. For years, California’s hospitals have made headway toward controlling costs. To ensure care for every Californian, the entire health care field must tighten its belt — insurance companies, physicians, labor unions, hospitals, pharmaceutical companies, and more.
Improving affordability is a priority for California hospitals — but with nearly two-thirds of health care spending occurring outside of hospitals, solving this challenge will take a combined effort from the entire health care system. To move toward our shared goals of affordable, equitable, and high-quality health care, hospitals work closely with the Office of Health Care Affordability.
CHA Argues OHCA’s Proposed Hospital Sector ‘Strains Credibility,’ Encourages Hospitals to Weigh In
What’s happening: On March 6, CHA sent a letter to the Office of Health Care Affordability (OHCA) calling attention to the office’s flawed, prejudicial approach to creating a hospital sector.
What else to know: Over the coming weeks, hospitals must engage at every opportunity to ensure the OHCA board understands the devastating impact its actions will have on patient care. See CHA’s March 13 alert for details.
OHCA Faces Tough Questions from Lawmakers, Hospitals
What’s happening: In a March 3 hearing, members of the Assembly Budget Subcommittee on Health pressed Office of Health Care Affordability (OHCA) leadership to answer questions on the impact its statewide and hospital-sector targets will have on patient care.
What else to know: During the hearing’s public comment portion, nearly 20 hospitals and health care organizations voiced their concerns with OHCA’s failure to account for the cost drivers and expenses that hospitals face and shared how these targets will negatively affect patient care.
State Legislative Landscape Starts to Come Into Focus
A little more than two weeks ago, the deadline passed for California lawmakers to introduce bills for this year’s legislative session. In all, some 2,350 bills are in play this year — a number in line with historical trends.
OHCA’s Rush Will Be Detrimental to Patient Care
The Office of Health Care Affordability (OHCA) is racing toward imposing even tighter spending growth caps well below the rate of inflation on a handful of California hospitals, which will irreparably harm patient care.
OHCA Board Considers Proposal to Adopt Reduced Spending Targets for ‘High-Cost’ Hospitals, CHA Voices Strong Opposition
What’s happening: On Feb. 25, the Office of Health Care Affordability (OHCA) board indicated general support for a formal proposal to impose reduced sector spending targets of 1.6% to 1.8% on 11 hospitals. However, a formal decision is not expected until April or May, following the conclusion of a 45-day public comment period on April 11
What else to know: In written and verbal comments, CHA voiced strong opposition to these proposed targets, noting that they not only come three full years before statutorily required, but are also deeply flawed, as they ignore critical factors relevant to understanding California’s hospitals.
Upcoming Programs Support Your Advocacy on OHCA, Federal Policy
With the state Office of Health Care Affordability (OHCA) barreling toward singling out hospitals for even lower spending growth targets than the statewide goal — and federal legislators debating budget proposals that would decimate Medicaid and Medicare funding — CHA has developed two opportunities for hospitals to prepare for engagement on both of these critical issues.
Advocating for Your Hospital While Congress Considers Medicare & Medicaid Cuts
Congress and the administration are considering significant cuts to Medicare and Medicaid payments to hospitals and limiting access to coverage. Join CHA’s federal lobbyist to learn how you can help educate your member of congress about how these plans could impact your community, your patients and your hospital.
CHA Publishes New Advocacy Materials on Priority Issues
What’s happening: In December, CHA’s board approved three advocacy priorities for California hospitals in 2025: Insurer Accountability, Office of Health Care Affordability (OHCA), and Securing Hospitals. New and updated advocacy materials on these priority issues are now available on CHA’s website.
OHCA Rushing Toward Dangerous Growth Targets
Late last month, California’s Office of Health Care Affordability (OHCA) established a statewide hospital sector, an expected vote that now enables the OHCA board to impose stricter spending targets on hospitals as soon as 2026.
OHCA Board Approves Creation of Hospital Sector, Paves Way for Lower Spending Targets in 2026
What’s happening: At the Jan. 28 Office of Health Care Affordability (OHCA) board meeting, the board voted 6-0 to create a statewide hospital sector and focused on options for imposing stricter spending targets on a limited set of “high-cost” hospitals.
What else to know: In February, OHCA staff will propose methodologies for determining which hospitals are high cost and what the spending target values will be. To set a lower sector spending target for at least some hospitals in 2026, OHCA’s board must take formal action by June 1, 2025.