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 and Advisory Committee Deliberate Over Proposed Spending Target 

What’s happening: In separate meetings this week, members of the Office of Health Care Affordability’s (OHCA) board and advisory committee offered varying perspectives on OHCA’s proposed spending target of 3%, some endorsing the target and others questioning its rationale and attainability.

What else to know: CHA commented in writing and at both meetings testified in person, joined by hospital and health care organizations advocating for changes as OHCA contemplates a final target.

OHCA Staff Issues Final Spending Target Recommendation

What’s happening: Yesterday, the Office of Health Care Affordability (OHCA) released its final recommendation of a 3% spending growth target for 2025-29.

What else to know: CHA submitted comments on this proposal Jan. 18. As CHA continues to advocate for an attainable, sustainable target, members’ support will be crucial in demonstrating the detrimental impact a 3% spending target would have on patient care.

Major OHCA Developments to Track in 2024

What’s happening: OHCA ended 2023 with a proposed preliminary spending target of 3% annually for five years and it finalized cost and market impact review regulations.  

What else to know: OHCA’s policy development and implementation is expected to accelerate in 2024, specifically related to the adoption of an initial health care spending target.