The Office of Health Care Affordability’s Board has capped health care cost increases in California at 3% per year, phasing in the increase over five years starting with 3.5% in 2025. This nation-leading effort aims to control rising health care costs and make critical care more affordable for people. Governor Gavin Newsom stated that making quality health care affordable is a top priority for his administration, and that this action is a crucial first step in their efforts to reign in outrageous health care costs and make health care more accessible.
The board based the target on the average annual change in median household income in California between 2002 and 2022, which was 3%. This cap will save lives by making preventative care more affordable for people. Too often, high health care costs drive people away from such care. In addition to the cost cap, Governor Newsom 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, making Californians’ lives more affordable and healthier.
