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 Board Pushes for Reconsideration of High-Cost Hospital Designations
What’s happening: The Office of Health Care Affordability (OHCA) board met on March 25, where it pushed the office to create a process to revise “high-cost” hospital determinations if based on faulty data. The board also deliberated over the process for providers to obtain adjustments to their spending targets related to the growth in non-supervisory organized labor costs.
Ahead of March 25 Meeting, CHA Presses OHCA Board to Adopt a Fair and Transparent Enforcement Process
What’s happening: Today, CHA submitted a letter to the Office of Health Care Affordability (OHCA) board, urging it to clearly articulate in regulation additional considerations that could justify an organization exceeding the spending growth cap — like investments in patient-centered care, baseline financial conditions, payer mix, and macroeconomic trends.
Leading with Honesty and Purpose on Affordability
Earlier this week, members of Congress pressed some of the nation’s top health care leaders, including Rick Pollack, President & CEO of the American Hospital Association and David Aizuss, MD, Chair of the Board of Trustees for the American Medical Association, about the role of health care providers in controlling health care costs.
CHA Alert: Action Needed on Distressed Hospital Loan Program, Hospital Mandates Bills
What’s happening: Earlier this week, CHA issued a dual alert asking members to sign on to coalition letters for its two sponsor bills: Assembly Bill (AB) 2353 (Pacheco, D-Downey), which would require an independent cost evaluation of mandates on hospitals, and AB 1923 (Soria, D-Merced), which would revive the Distressed Hospital Loan Program. For AB 2353, members should also submit a support letter highlighting previously imposed mandates that have caused the hospital to...
Affordability, Drug Pricing in Focus at Key AHA Meeting
Discussions at this week’s American Hospital Association Regional Policy Board 9 meeting will delve into several timely and weighty issues for hospitals in California and nationwide.
CHA Sets Record Straight at Joint Legislative Hearing on Affordability
What’s happening: On Wednesday, the Assembly and Senate Health Committees convened a joint hearing intended to focus on the impacts of the One Big Beautiful Bill Act (OBBBA) on California’s health care system, rising costs, coverage losses, and potential state-level responses.
At Inaugural Patient and Consumer Forum, Attendees Urge OHCA to Protect Access
What’s happening: This week, the Office of Health Care Affordability (OHCA) held its inaugural patient and consumer forum, providing an opportunity for staff to directly engage with patients, consumers, and advocates.
Following State Bill Intro Deadline, Focus Remains on Financial Instability
Last Friday marked the deadline to introduce bills for the 2026 state legislative session. While the focus for this year will be on CHA’s two sponsored bills, there are several concerning pieces of legislation that will demand intensive engagement. (All told, about 1,800 bills have been introduced this year.)
Court Releases Initial Ruling in OHCA Lawsuit
What’s happening: On Tuesday, a San Francisco County Superior Court judge ruled that CHA has not yet demonstrated that it has standing to pursue its claim that policies implemented by the Office of Health Care Affordability (OHCA) are jeopardizing access to and the quality of lifesaving health care, in violation of state law.
OHCA Still Seeking Presentations from Hospitals on Cost-Reducing Strategies
What’s happening: Ahead of its next board meeting on March 25, the Office of Health Care Affordability (OHCA) continues to seek presentations from health care providers on strategies that have successfully reduced health care spending while promoting good health outcomes. To date, the board has heard from seven health care entities about their cost-reducing strategies.