The escalating cost of healthcare in California has been a topic of extensive study and discussion. This resource brings together the most important data to explain the affordability crisis, covering the causes, impact, and potential solutions.
While high or growing healthcare spending is not necessarily a bad thing if it means better care for Californians, it is evident that excessive spending does not result in improved care. Experts believe that excess spending can be reduced without jeopardizing access to care or its quality.
The sources of excess spending in the healthcare system are detailed in this section. Independent research estimates that 20-25% of healthcare spending in California is excessive, amounting to approximately $81 billion to $101 billion annually. This section also identifies the major drivers of excess spending and provides examples to illustrate this point.
The impact of high healthcare costs on Californians is discussed in this section. Families in California feel the financial strain of healthcare costs through higher insurance premiums and deductibles, lost wages, and taxes. The section also highlights how healthcare has become unaffordable for many, particularly affecting Black and Latino/x Californians, as well as those with lower incomes.
This section focuses on potential solutions to the healthcare affordability crisis. It highlights the policy and regulatory options available to California’s Office of Health Care Affordability in addressing this issue, including measures such as increasing transparency in pricing and reducing administrative costs.