After years of trying to rein in health care costs, California has a new agency with the power to enforce limits on future cost growth.
Initial iterations of the proposal took a hardline stance on controlling the cost of medical goods and services by capping prices even lower than current prices. Instead, in its current form, industry officials and legislators compromised by having the office only target future cost growth.
The California Medical Association, which lobbies for doctors, successfully pushed to get doctor groups consisting of less than 25 physicians exempted from the bill. “Our point of view has always been, this is an all-in proposition,” California Hospital Association spokesperson Jan Emerson-Shea said. “This can’t just be on the backs of hospitals.”
Instead, Moordigian is enrolled in a plan through Covered California, the state’s health insurance marketplace. She only pays $1 a month. The tradeoff is her deductible and annual out-of-pocket maximum are high, at $6,300 and $8,200, respectively. It’s the lowest coverage option available, but with rent and student loans eating away most of her take-home pay, it’s the only one she can afford.
“I would be working for free in order to have health insurance for my family of four,” Dellapasqua said. She chose a Covered California plan instead. Labor union officials signed on as staunch supporters of the Office of Health Care Affordability early in negotiations, largely to tackle wage growth.
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