Governor Gavin Newsom recently announced that the Office of Health Care Affordability’s Board has voted to cap health care cost increases in California. This measure is aimed at making critical care more affordable for the people and saving lives by making preventative care more accessible. The cap will be phased in over five years, starting at 3.5% in 2025 to minimize disruptions and ensure compliance.
The decision to cap cost increases at 3% was based on the average annual change in median household income in California over the past two decades. This is significantly lower than the projected 4.6% increase in the cost of practicing medicine in the United States this year alone, and the 5.4% annual increase in healthcare costs Californians have experienced for the past twenty years.
In addition to this cap, Governor Newsom has announced a partnership with Amneal to bring down the cost of naloxone for the state’s Naloxone Distribution Project, lowering the price to just $24 per pack. This initiative is a part of the state’s efforts to make healthcare more affordable and accessible to all Californians, who often face high costs that deter them from seeking necessary medical attention.
