Health Care Advocates Recognize Major Win to Slow Health Care Spending Growth

Health Care Board Votes to Approve Penalties for Health Care Entities That Exceed State Targets

SACRAMENTO, CA — Health Access California applauds the unanimous decision from the Health Care Affordability Board, which voted on Wednesday, August 26, 2026, to approve penalties for health care entities that exceed the state’s health care cost-growth targets. California is leading the way in tackling rising health care costs by putting in place processes to help health care entities meet cost-growth goals and hold bad actors accountable when they fall short. Real enforcement penalties are vital to incentivize hospitals, health insurers, and physician organizations to find ways to slow the skyrocketing cost of care, ensuring health care remains affordable for the Californians who need it.

This could mean real change for Californians. California Health Care Foundation reported that in the last year, 6 out of 10 Californians skipped or delayed their health care because of the cost. Over the next decade, cost-growth targets are expected to bend the cost of health care downward to lower how much consumers pay for their premiums. Without action like this from OHCA, Californians will be spending $16,895 per person, per year, on premiums in 2032.

A study by the California Health Care Foundation found that 25% of every health care dollar spent provides zero value to patients, and instead goes towards excessive administrative costs and red tape, hospital profits, and treating preventable illnesses (that become more costly when patients delay care because they cannot afford it).

“These enforcement penalties are a step in the right direction towards a future where the health care system is more balanced towards consumers, not just tipped in favor of health care corporations,” said Amanda McAllister-Wallner, Executive Director, Health Access California. “If these cost targets had been met over the last three years, families with employer-sponsored coverage could have saved $5,800 in total. Without action like this, we will end up with a health care system full of people providing care, with no one to care for because they can’t afford the cost.”

This vote came after years of public meetings by the OHCA board to hear comments from workers, health providers, health care purchasers, small businesses, and consumers. Today, a packed room included teachers, retail workers, and patients lining up in support of the penalties, telling their stories of how high health care costs make them sicker and take money out of their wages when they are already struggling financially. While health care industry representatives spoke out in opposition, it’s important to note that these penalties will only be enforced after exhausting lengthy enforcement processes to get hospitals, insurers, and physician organizations to meet the goals. The law requires multiple phases of enforcement before fines are imposed.

“I showed up today to fight for my son who has asthma and other neurological disorders. When I strike, I do it for affordable health care so he can get the care that he needs,” said Claudia Garcia, Unite Here member, barista and mother from San Francisco who attended today’s hearing in Sacramento. “California needs these penalties because health care should help our families, not hurt them financially. Strong enforcement will bring these costs under control, protecting the health care future of our children and families.”

Additional Resources:

For additional context on California’s health care cost-growth target, see the Health Access California fact sheet: California’s Office of Health Care Affordability Basics

Health Access has storytellers available for interviews in both English and Spanish. 

MEDIA CONTACTS: 

Rachel Linn Gish, Health Access California, [email protected]

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