A significant amount of research, analysis, and commentary has been dedicated to explaining why health costs continue to escalate in California. This resource pulls together a set of the most relevant and important data points that best tell the story of the health care affordability crisis in California, including its causes, the impact on Californians, and potential solutions. Readers are encouraged to explore the source reports in each section for further details.
The following sections cover these topics:
- The problem. This section explains that health care spending is growing at an unjustifiable rate in California. There is nothing inherently wrong with high or growing health care expenditures, if that spending delivers more or better care to Californians. But it is clear that too much spending in California achieves neither. Experts call this “excess spending” and argue that it can be reduced without harming access or quality of care.
- Sources of excess spending. Independent researchers estimate that 20%–25% of health care spending in California is excess spending. This would equate to roughly $81 billion to $101 billion annually according to the most recent estimates of state expenditures. This section names the biggest drivers of excess spending and provides examples.
- The impact on Californians. California families pay for every dollar that goes into our health care system through health insurance premiums and deductibles, forgone wages, and taxes. This section highlights a few of the various metrics that show that health care has simply become unaffordable for far too many, and that Black and Latino/x Californians and Californians with lower incomes are disproportionately affected.
- Possible solutions. The policy and regulatory options available to California’s Office of Health Care Affordability are highlighted.
