CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2817Introduced by Assembly Member WoodFebruary 20, 2020 An act to add Division 117 (commencing with Section 150300) to the Health and Safety Code, relating to the Office of Health Care Affordability. LEGISLATIVE COUNSEL'S DIGESTAB 2817, as introduced, Wood. Office of Health Care Affordability.Existing federal law, the Patient Protection and Affordable Care Act (PPACA), enacts various health care market reforms. Existing state law creates the California Health Benefit Exchange (Exchange), also known as Covered California, to facilitate the enrollment of qualified individuals and qualified small employers in qualified health plans as required under PPACA. Until January 1, 2023, existing law requires the Exchange to administer a program to provide health care coverage financial assistance to California residents with household incomes at or below 600% of the federal poverty level.This bill would create the Office of Health Care Affordability to improve the affordability of private health care coverage. The bill would require the office to, among other things, create strategies to address cost trends by region and develop measures of affordability for consumers and other purchasers of private health care coverage.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Division 117 (commencing with Section 150300) is added to the Health and Safety Code, to read:DIVISION 117. Office of Health Care Affordability150300. There is in state government an Office of Health Care Affordability.150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:(1) Increasing price and quality transparency.(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.(3) Imposing financial consequences on entities that fail to meet the targets.(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2817Introduced by Assembly Member WoodFebruary 20, 2020 An act to add Division 117 (commencing with Section 150300) to the Health and Safety Code, relating to the Office of Health Care Affordability. LEGISLATIVE COUNSEL'S DIGESTAB 2817, as introduced, Wood. Office of Health Care Affordability.Existing federal law, the Patient Protection and Affordable Care Act (PPACA), enacts various health care market reforms. Existing state law creates the California Health Benefit Exchange (Exchange), also known as Covered California, to facilitate the enrollment of qualified individuals and qualified small employers in qualified health plans as required under PPACA. Until January 1, 2023, existing law requires the Exchange to administer a program to provide health care coverage financial assistance to California residents with household incomes at or below 600% of the federal poverty level.This bill would create the Office of Health Care Affordability to improve the affordability of private health care coverage. The bill would require the office to, among other things, create strategies to address cost trends by region and develop measures of affordability for consumers and other purchasers of private health care coverage.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill
No. 2817
Introduced by Assembly Member WoodFebruary 20, 2020
Introduced by Assembly Member Wood
February 20, 2020
An act to add Division 117 (commencing with Section 150300) to the Health and Safety Code, relating to the Office of Health Care Affordability.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2817, as introduced, Wood. Office of Health Care Affordability.
Existing federal law, the Patient Protection and Affordable Care Act (PPACA), enacts various health care market reforms. Existing state law creates the California Health Benefit Exchange (Exchange), also known as Covered California, to facilitate the enrollment of qualified individuals and qualified small employers in qualified health plans as required under PPACA. Until January 1, 2023, existing law requires the Exchange to administer a program to provide health care coverage financial assistance to California residents with household incomes at or below 600% of the federal poverty level.This bill would create the Office of Health Care Affordability to improve the affordability of private health care coverage. The bill would require the office to, among other things, create strategies to address cost trends by region and develop measures of affordability for consumers and other purchasers of private health care coverage.
Existing federal law, the Patient Protection and Affordable Care Act (PPACA), enacts various health care market reforms. Existing state law creates the California Health Benefit Exchange (Exchange), also known as Covered California, to facilitate the enrollment of qualified individuals and qualified small employers in qualified health plans as required under PPACA. Until January 1, 2023, existing law requires the Exchange to administer a program to provide health care coverage financial assistance to California residents with household incomes at or below 600% of the federal poverty level.
This bill would create the Office of Health Care Affordability to improve the affordability of private health care coverage. The bill would require the office to, among other things, create strategies to address cost trends by region and develop measures of affordability for consumers and other purchasers of private health care coverage.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Division 117 (commencing with Section 150300) is added to the Health and Safety Code, to read:DIVISION 117. Office of Health Care Affordability150300. There is in state government an Office of Health Care Affordability.150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:(1) Increasing price and quality transparency.(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.(3) Imposing financial consequences on entities that fail to meet the targets.(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Division 117 (commencing with Section 150300) is added to the Health and Safety Code, to read:DIVISION 117. Office of Health Care Affordability150300. There is in state government an Office of Health Care Affordability.150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:(1) Increasing price and quality transparency.(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.(3) Imposing financial consequences on entities that fail to meet the targets.(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.
SECTION 1. Division 117 (commencing with Section 150300) is added to the Health and Safety Code, to read:
### SECTION 1.
DIVISION 117. Office of Health Care Affordability150300. There is in state government an Office of Health Care Affordability.150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:(1) Increasing price and quality transparency.(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.(3) Imposing financial consequences on entities that fail to meet the targets.(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.
DIVISION 117. Office of Health Care Affordability150300. There is in state government an Office of Health Care Affordability.150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:(1) Increasing price and quality transparency.(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.(3) Imposing financial consequences on entities that fail to meet the targets.(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.
DIVISION 117. Office of Health Care Affordability
DIVISION 117. Office of Health Care Affordability
150300. There is in state government an Office of Health Care Affordability.
150300. There is in state government an Office of Health Care Affordability.
150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:(1) Increasing price and quality transparency.(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.(3) Imposing financial consequences on entities that fail to meet the targets.(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.
150301. (a) The office shall be responsible for improving the affordability of private health care coverage by doing all of the following:
(1) Increasing price and quality transparency.
(2) Developing specific strategies and cost targets for different sectors of the health care industry with an initial goal of reducing the rate of growth and a future goal of reducing the actual cost of care.
(3) Imposing financial consequences on entities that fail to meet the targets.
(4) Setting the ultimate goal of returning savings to consumers who are directly impacted by health care costs.
(b) The office shall create strategies to address cost trends by region, with a particular focus on cost increases driven by delivery system consolidation.
(c) To improve health outcomes, the office shall work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to reduce administrative waste.
(d) The office shall develop measures of affordability for consumers and other purchasers of private health care coverage.
(e) The office shall promote and measure quality to ensure that Californias health care system is improving access and equity while delivering value.