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OCA baseline report: California health spending rose 8.2% in 2023; admin costs and profits drew scrutiny

5411017 · July 17, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

OCA's baseline report showed statewide total health care expenditures rose to $408.6 billion in 2023 (an 8.2% increase from 2022); per‑capita THCE rose to $10,847. Committee members and public commenters questioned a notable rise in payers' administrative costs and profits and asked OCA for further analysis.

OCA staff presented key findings from its inaugural baseline report to the advisory committee on June 16: total statewide health care expenditures (THCE) rose from about $377.6 billion in 2022 to $408.6 billion in 2023, an 8.2% increase; per‑capita THCE rose from $9,676 to $10,847 (an 8.4% increase). Breakdowns by market: The report showed 2023 shares and growth by major market: commercial spending rose 5.8% to $127.8 billion (about 31% of statewide THCE), Medicare (non‑dual) grew 6.0% to $112.6 billion (28% share), and Medi‑Cal grew 6.5% to $134.1 billion (33% share). Dual‑eligible spending reported separately rose 35% year over year, from $6.5 billion to $8.8 billion, driven…

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