California Weighs Penalties for Healthcare Providers That Don’t Rein In Costs

California is weighing stiff penalties for hospitals and other healthcare providers that blow past state spending limits. KFF Health News reports the state's affordability office could fine them up to one hundred twenty-five percent of whatever they spend above annual growth targets. The proposal follows a request for healthcare entities to hold growth to three and a half percent last year, easing down to three percent by twenty twenty-nine — with seven of the state's most expensive hospitals facing even tighter caps. Consumer advocates say financial deterrents are critical for Californians struggling with high premiums and out-of-pocket costs, while the hospital industry, which has a pending lawsuit against the limits, warns of cutbacks to emergency rooms, obstetrics, and behavioral health. The board is set to discuss and potentially vote on the penalties at its August twenty-sixth meeting, though the earliest any provider would face penalties is twenty twenty-eight.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton