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OCA recommends holding spending target steady; board debates lookback window and high‑cost hospital criteria
Summary
OCA presented 2024 economic data and an updated list of high‑cost hospitals, recommending not to reset the statewide 3% spending target; board members debated whether to use a 20‑year vs. 10‑year lookback for median household income and the implications for predictability and affordability.
Office of Health Care Affordability staff reviewed economic indicators used in setting the statewide spending target and presented an updated list of hospitals meeting high‑cost criteria.
Staff walked through 2024 changes: California median household income rose 11.9% in 2024, bringing the 20‑year annual average to 3.7% (up 0.7 percentage points from the value used to set the 3% target). OCA said health‑care spending growth still outpaces income and argued for maintaining a predictable,…
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