New California rule aims to limit health care cost increases to 3% annually

[Duaine]

Oh, I'm sure that this is going to work out very well...

SACRAMENTO, Calif. (AP) — Doctors, hospitals and health insurance companies in California will be limited to annual price increases of 3% starting in 2029 under a new rule state regulators approved Wednesday in the latest attempt to corral the ever-increasing costs of medical care in the United States.

The money Californians spent on health care went up about 5.4% each year for the past two decades. Democrats who control California’s government say that’s too much, especially since most people’s income increased just 3% each year over that same time period.

The 3% cap, approved Wednesday by the Health Care Affordability Board, would be phased in over five years, starting with 3.5% in 2025. Board members said the cap likely won’t be enforced until the end of the decade.

A new state agency, the Office of Health Care Affordability, will gather data to enforce the rule. Providers who don’t comply could face fines.

[EXTERNAL LINK] - New California rule aims to limit health care cost increases to 3% annually

 

[somarco]

Fewer carriers and providers . . . more claim denials . . . less access to care

Legislation can attempt to control premiums but price controls on providers is going to create problems. I smell lawsuits.

Elections have consequences.

 

[LeeV]

Nixon did the same thing with his Wage and Price Freeze of the early 70s. Really kept inflation in check. Lol

 

[somarco]

Nixon did the same thing with his Wage and Price Freeze of the early 70s. Really kept inflation in check

Until the wage/price controls expired . . .

 

[LeeV]

Until the wage/price controls expired . . .

As you probably know I was completely tongue in cheek on that one.

 

[vic120]

Because CA is the picture of successful social and economic policies

 

[straightnochaser]

Because CA is the picture of successful social and economic policies

$3.8 trillion GDP and the 5th largest economy in the world, I think we are doing just fine.

 

[vic120]

$3.8 trillion GDP and the 5th largest economy in the world, I think we are doing just fine.

I could tell with all the tent cites and mass robberies
the many business are leavening due to legalized theft
and people are told to leave their car doors unlocked so they don't have broken widows from the thieves

real peachy it seems

 

[straightnochaser]

I could tell with all the tent cites and mass robberies
the many business are leavening due to legalized theft
and people are told to leave their car doors unlocked so they don't have broken widows from the thieves

real peachy it seems

very peachy tyvm... CA has problems but where doesn't? I have lived all over the world, nothing comes close to CA living.

 

[Duaine]