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.

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 Urges OHCA Board to Reject Draconian Penalties

What's happening: The Office of Health Care Affordability’s (OHCA) board met on Wednesday and continued deliberations over the monetary penalties for violating the spending targets. The office also introduced draft regulations to implement Assembly Bill (AB) 1415 (Statutes of 2025), which expands OHCA’s authority to review certain types of health care market transactions.

CHA’s Two Sponsored Bills Make It Out of Assembly Health Committee

What’s happening: Despite the concerns of Chair Mia Bonta, both CHA-sponsored bills —Assembly Bill (AB) 1923 (Soria, D-Merced) and AB 2353 (Pacheco, D-Downey) — moved out of the Assembly Health Committee on Tuesday. AB 1923 would expand the Distressed Hospital Loan Program (DHLP) and AB 2353 would allow for additional cost analysis of proposed legislation and regulations...

California Hospitals Denounce State Cuts to Health Care

SACRAMENTO (April 22, 2025) — “Today’s decision by the Office of Health Care Affordability (OHCA) to impose deep cuts on seven hospitals will create alarming consequences for patient care,” said Carmela Coyle, President & CEO of the California Hospital Association. “These cuts are coming on top of below-inflation spending caps for all hospitals that OHCA has already put in place. Make no mistake — the hospital care Californians receive is now being decided by a handful of unelected people who are cutting billions of dollars from your health care.”

Hospitals Call Out Office of Health Care Affordability’s Flaws in Setting Limits on Health Care Spending

SACRAMENTO (March 26, 2025) — “The Office of Health Care Affordability’s (OHCA’s) efforts to impose below-cost spending caps on hospitals —and call out 11 specific hospitals for even deeper cuts— is premature and without solid basis,” said Carmela Coyle, President & CEO of the California Hospital Association. “The decisions made by the OHCA Board will cap how much can be spent on health care for Californians — that means real pain for real people.”