As Californians face an affordability crisis on many fronts, a new, bold effort has been proposed to address the rising cost of care that is out of workers’ wages and family finances. In January California Governor Gavin Newsom released a proposed 2022-2023 state budget which included a far-reaching proposal to create a new Office of Health Care Affordability.
This new Office will be charged with increasing price and quality transparency, developing specific strategies and cost targets for the different sectors of the health care industry, and financial consequences for entities that fail to meet these targets. The ultimate goal is to have these savings be returned to consumers who are directly impacted by increasing health care costs. This new Office would put in place a comprehensive strategy to contain health care costs, setting targets for affordability with accountability, and drive innovation in payment and delivery of care.
Given the size and scale of the issue, as well as the solutions the Office could provide, the proposal has garnered the support of a broad range of organizations, including consumer, labor, business, health providers, and health care plans committed to working together to meet the goals of the Office.
Health Access Detailed Factsheet: The Office of Health Care Affordability