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ICYMI: Newsom Administration Votes to Rein in Increasing Health Care Costs

The Office of Health Care Affordability’s Board voted last week to cap health care cost increases in California – a nation-leading effort to rein in increasing health care costs and make critical care more affordable for people.

The 3% cap would be phased in over five years to ensure minimal disruptions and maximum compliance, starting with 3.5% in 2025.

“Making quality health care affordable is a top priority for our administration. This action is a crucial first step forward in our efforts to reign in outrageous heath care costs and make health care more affordable.”

Governor Gavin Newsom

WHY THIS MATTERS: This action will save lives and help people get the preventative care they need to stay healthy in the first place. Too often health care costs drive people away from such care.

WHY 3%: The board based the target on the average annual change in median household income in California between 2002 and 2022, which was 3%.  In December, the Center for Medicare and Medicaid Services said the cost to practice medicine in the United States would increase 4.6% this year alone. And the money Californians spent on health care went up about 5.4% each year for the past two decades.

BIGGER PICTURE: This comes as Governor Newsom announces 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 – a 40% decrease compared to current market prices.

Learn more about this crucial effort to make Californians’ lives more affordable & healthier here.