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California aims to limit health care costs with new office

California-Health Care Affordability
Posted at 1:33 PM, Mar 14, 2022

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom wants to create a new state office to keep health care prices in check.

The proposed Office of Health Care Affordability would order hospitals, doctor's offices and insurers to keep their costs below a certain level.

Anyone who breaks the rules could face a hefty fine. At least four other states have similar offices.

But they rarely impose fines, and none would be as comprehensive as California's office.

The California Hospital Association warns there could be unintended consequences.

They also say 45% of hospitals are already operating at a loss.