California Governor Hopes to Limit Health Care Prices

PBGH’s Bill Kramer talks to KNX News about California’s proposed Office of Health Care Affordability. Listen below:

Transcript

Governor Newsom hopes to limit health care prices with a proposed new state office. The goal is to put a limit on how much medical providers can charge for things like surgeries, visits, tests and other medical care. It would be called the Office of Health Care Affordability.

Here’s Bill Kramer with the nonprofit Purchaser Business Group on Health:

“The U.S. spends much more than any other country on health care, but the quality of care and access to care is actually worse.”

Kramer tells KNX, big hospitals have bought out the small ones, reducing competition and raising prices.

“They’ve broken a competitive market model in most parts of the state, and if the market won’t do it, we have to turn to public policy.”

However, the California Hospital Association told the Associated Press that the move could have unintended consequences and 45% of hospitals are already operating at a loss.