Health Policy Commission sets 2026 health care cost growth benchmark at 3.6%

The Health Policy Commission voted to establish the statewide health care cost growth benchmark for calendar year 2026 at 3.6%, the default rate tied to the state’s potential gross state product (PGSP), after hearing testimony from employers, providers and consumer advocates.

Executive Director David Seltz reviewed the annual benchmark‑setting process and explained that the 3.6% default reflects the PGSP estimate developed by state budget and economic committees. Staff emphasized the benchmark is a measurable target designed to catalyze policy action rather than a strict cap.

General counsel Lois Johnson summarized testimony submitted at the public hearing: many organizations recommended keeping the benchmark at 3.6%; some business groups pushed for lower targets; provider groups asked for suspension or reform of the framework, citing workforce and capacity pressures and questioning PGSP as a metric. Commissioners discussed competing priorities — affordability and access for patients, and financial and workforce pressures on providers — and several urged that staff use new statutory authorities to support meeting the benchmark.

Commissioner Cutler said the specific number matters less than deploying “every tool in the toolbox” to achieve the benchmark, while Commissioner Castile stressed affordability and the disproportionate effect on communities of color. Multiple commissioners, including Commissioner Wilmouth and Commissioner Master Giovani, said they supported holding the default 3.6% rate for 2026 but emphasized monitoring and possible reform of the benchmark process over time.

By roll call the Commission approved the 3.6% benchmark. Staff noted that modifying the benchmark upward or downward would require a supermajority and could trigger additional hearings and legislative review. The Commission also signaled a continued focus on workforce, equity and pharmaceutical spending as priorities for implementation work.