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Newsom Proposes New Healthcare Affordability Office

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Sacramento, CA — Governor Gavin Newsom is proposing a new state office be created to limit healthcare costs placed on Californians.

The Office of Health Care Affordability would direct hospitals and insurers to keep costs below a certain level and those who defy the rules would face significant fines. Newsom argues that it should help keep healthcare costs in check.

However, the California Hospital Association is warning lawmakers that there could be unintended consequences because of the strain it would put on medical providers. The organization estimates that 45-percent of hospitals are already operating at a loss.

Four other states have similar offices (Massachusetts, Maryland, Rhode Island and Oregon), but California’s would be the most comprehensive, and more willing to punish and fine providers.