Healthcare Innovation April 29, 2024
David Raths

Beginning with the 2026 target, the Office of Health Care Affordability can begin taking progressive enforcement action against healthcare entities that exceed the spending growth target

Like several other states, California is getting serious about trying to limit the growth of statewide healthcare spending. The California Department of Health Care Access and Information (HCAI)’s Office of Health Care Affordability’s Board has approved a statewide healthcare spending growth target of 3 percent.

The spending target will be phased in over time. Initially starting at 3.5 percent for 2025 and 2026, the target will be lowered to 3.2 percent for 2027 and 2028 before ultimately reaching 3 percent for 2029 and beyond.

Other states are working on cost growth targets as...

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