Legislators Express Concern with New OHCA Spending Targets

California legislators are expressing concern over a recent decision by the Office of Health Care Affordability (OCHA) to establish a health care spending target of 1.8% on select hospitals and a target for all other health care payers and providers of 3.5%.

In the letter, the authors ask for more information relating to OHCA and express how important it is for the Legislature to be provided with information on how OHCA’s efforts may impact Californians.

The letter questions OHCA regarding the targets, including what analysis was performed to ensure stability, equitable care and workforce development in health care; how the targets could impact access to care; and if considerations were made for the possible impact of proposed federal decisions. The memo questions whether the multiyear statewide spending target is attainable without unintended negative consequences and if any analysis has been done to analyze the real drivers of heath care spending. 

The letter was signed by eleven legislators in all, including the Chair of the Senate Budget Subcommittee on Health and Human Services, Sen. Dr. Akilah Weber; Sens. Catherine Blakespear, Laura Richardson, Tim Grayson and Monique Limon; and Asms. Gregg Hart, Lori Wilson, Dr. LaShae Sharp-Collins, Rhodesia Ransom, Esmeralda Soria and Dawn Addis.

Read the full letter here.