In California, the Office of Health Care Affordability’s Board has voted to cap health care cost increases, making it a nation-leading effort to control rising costs and make essential care more affordable for people. The 3% cap will be phased in over five years, starting with 3.5% in 2025, to minimize disruptions and ensure maximum compliance.
Governor Gavin Newsom stated that making quality health care affordable is a top priority for his administration. This action is an initial step towards controlling outrageous health care costs and making healthcare more accessible.
By basing the target on the average annual change in median household income in California between 2002 and 2022, which was 3%, the board aims to save lives and help people access preventative care they need to stay healthy. In December, the Center for Medicare and Medicaid Services announced that the cost of practicing medicine in the United States would increase by 4.6% this year alone, while Californians spent about 5.4% more each year on healthcare over the past two decades.
In addition to capping health care costs, Governor Newsom also announced that the state’s CalRx Naloxone Initiative has partnered with Amneal to bring down the cost of naloxone to just $24 per pack for the state’s Naloxone Distribution Project. This is a 40% decrease compared to current market prices, which will make Californians’ lives more affordable and healthier.