In an effort to make critical health care more affordable for people, the Office of Health Care Affordability’s Board has voted to cap health care cost increases in California. This nation-leading initiative will help rein in increasing costs and ensure that people have access to the care they need. The 3% cap will be phased in over five years, starting with 3.5% in 2025, to minimize disruptions and maximize compliance.
Governor Gavin Newsom emphasized that making quality health care affordable is a top priority for his administration. He described this decision as a crucial first step towards reigning in exorbitant costs and making healthcare more accessible. This action is expected to save lives and help people access preventative care they need to stay healthy.
The 3% cap was based on the average annual change in median household income in California between 2002 and 2022, which was 3%. According to the Center for Medicare and Medicaid Services, the cost of practicing medicine in the US was projected to increase by 4.6% in the same year. Additionally, Californians have been spending about 5.4% more on healthcare each year for the past two decades.
In addition to the healthcare cost cap, Governor Newsom also announced that the state’s CalRx Naloxone Initiative has partnered with Amneal to reduce the cost of naloxone to just $24 per pack for the state’s Naloxone Distribution Project. This marks a significant decrease of over 40% compared to current market prices, making naloxone more accessible and affordable for those who need it most.
Overall, these efforts are aimed at improving affordability and health outcomes for Californians by reducing healthcare costs and increasing accessibility to preventative care. To learn more about this crucial initiative, visit their website for more information.
