California Governor’s Administration Takes Major Step to Make Health Care More Affordable

Governor Gavin Newsom’s administration has taken a major step towards making quality health care more affordable for Californians. The Office of Health Care Affordability’s Board recently voted to cap health care cost increases in California at a nation-leading 3% per year. This cap will be phased in over five years, starting with 3.5% in 2025, to ensure minimal disruptions and maximum compliance.

The board based the target on the average annual change in median household income in California between 2002 and 2022, which was 3%. This action will save lives and help people get the preventative care they need to stay healthy in the first place. Too often, high health care costs drive people away from such care.

In addition to the health care cost cap, Governor Newsom announced that the state’s CalRx Naloxone Initiative has partnered with Amneal to bring down the cost of naloxone to just $24 per pack for the state’s Naloxone Distribution Project. This is a 40% decrease compared to current market prices. This effort aims to make Californians’ lives more affordable and healthier.

Making quality health care affordable is a top priority for our administration,” said Governor Newsom. “This action is a crucial first step forward in our efforts to reign in outrageous health care costs and make health care more affordable.”