Affordability

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. California’s hospitals stand ready to tackle this challenge through engagement with the Office of Health Care Affordability

OHCA Board Approves Advisory Committee Appointments and Deliberates Over Efforts to Expand Preventive Care

What’s happening: At its May 22 meeting, the Office of Health Care Affordability (OHCA) board discussed OHCA’s proposals to refocus the state’s health care system on prevention and encourage the use of payment arrangements aligned with that goal.  

What else to know: CHA submitted a letter to the OHCA board responding to the finalized spending growth target and urging the board to reevaluate the target annually.  

OHCA Board Adopts First Statewide Spending Target: 3.5%, Ramping Down to 3%

What’s happening: On Wednesday, the Office of Health Care Affordability (OHCA) board approved a five-year statewide health care spending growth target for 2025 through 2029. 

What else to know: While the adoption of the target represents a major milestone, much more work will be needed to encourage the target’s regular reevaluation and clarify its enforcement. 

Office of Health Care Affordability Decision to Limit Spending Fails to Account for Californians’ Future Health Care Needs

“Today’s action by the new Office of Health Care Affordability Board to limit what California spends on health care sets a goal that will have significant consequences for patient care,” said Carmela Coyle, President & CEO of the California Hospital Association. “The target established today does not account for the needs of Californians over the […]

CHA Issues Alert Ahead of OHCA Hearing

Earlier this week, CHA issued an alert urging members to testify at next week’s Office of Health Care Affordability (OHCA) board meeting. With the board’s final decision on a spending target expected at either the April 24 or May 22 board meeting, it is crucial that hospital voices continue to be heard. The board is […]

OHCA Board States Positions on the Spending Target, Without Taking a Vote

What’s happening: The Office of Health Care Affordability (OHCA) board met on March 25 to consider the staff-proposed 3% statewide spending target and the related stakeholder feedback.  

What else to know: While the board did not formally adopt the target, most board members expressed general comfort with the 3% proposal, with the possibility of moderate revisions. The final target will be adopted in April or May. 

CHA Urges OHCA to Adopt One-Year, Modified Target

What’s happening: In its formal comment letter submitted earlier this week to the Office of Health Care Affordability (OHCA), CHA urged the office to modify its 3%, five-year spending growth target proposal and instead adopt a one-year target that reflects key drivers of health care spending.  

What else to know: OHCA must adopt its final proposal by June 1 — members should continue to engage with the board through public comment at its upcoming meetings; the next opportunity is March 25.