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.
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.
Executive Update: Office of Health Care Affordability Focuses Its Attention on Hospitals
The Office of Health Care Affordability (OHCA) is moving at a rapid pace, implementing ambitious spending targets and other rules. OHCA has recently turned its attention toward the hospital field, with a goal of adding further restrictions on spending growth for at least some hospitals.
Gov. Newsom Previews 2024-25 State Budget Proposal Ahead of Jan. 10 Release
What’s happening: In a high-level preview to reporters on Jan. 6, Gov. Gavin Newsom shared that his budget proposal features improved revenue projections, which help to keep the $322 billion spending plan in balance.
What else to know: The preview took place during Newsom’s tour of the Central Valley to promote his economic vision for the state, which includes key themes of government accountability, reducing the cost of living, and keeping California competitive.
OHCA Board Could Approve Creation of Statewide Hospital Sector in Early 2025
What’s happening: The Office of Health Care Affordability (OHCA) board met earlier this week to discuss options for defining hospitals as a sector for spending target purposes, as well as receive an update on progress toward adopting a behavioral health investment benchmark.
What else to know: CHA wrote to the board and provided public comment, pressing that the adoption of a hospital sector definition is premature and misguided, while stating the importance of including the full continuum of clinically appropriate services in OHCA’s behavioral health investment benchmark.