Rate Setting

About Rate Setting

Health care must be more affordable — but rate setting is not the answer. Capping the rates that health insurance companies pay to hospitals not only reduces resources for services on which communities rely, but also fails to address the true cost drivers of health care and in no way guarantees that the windfalls insurers would realize will be passed on to consumers in the form of lower monthly insurance premiums.

Hospitals are committed to providing a broad range of high-quality health services — 24/7 emergency care, leading-edge surgeries, advanced diagnostics, optimal labor and delivery care throughout the state. Cutting the resources that support these services, without consideration of the impact on patient care, could lead to adverse short- and long-term consequences for patients and communities. And in many areas — such as behavioral health care, which is facing a structural workforce shortage — more investment is needed to ensure Californians’ needs are met.