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Office of Health Care Affordability draws scrutiny after board sets hospital sector targets
Summary
HCAI briefed the Senate subcommittee on the Office of Health Care Affordability’s newly adopted statewide spending-growth target (3.5% in 2025 to 3.0% in 2029) and a lower sector target for a set of high-cost hospitals, prompting questions about accounting for inflation, seismic costs, and near-term impacts on consumers and hospitals.
The director of the Department of Health Care Access and Information (HCAI) told the Senate Budget Subcommittee No. 3 that the Office of Health Care Affordability (OCA) is implementing a statewide spending-growth target for the health system and a separate, lower target for a group of identified “high-cost” hospitals.
Elizabeth Landsberg, HCAI director, said the statewide target adopted by the affordability board is a five-year sequence beginning at 3.5 percent in 2025 and decreasing to 3.0 percent in 2029. The target is intended to moderate health spending growth in excess of median household income and to slow long-term price escalation.
The hospital-sector decision Landsberg said the board authorized a hospital sector target after public testimony and an…
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