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    AB-1474
    Health & Public Health

    Health care cost targets.

    Introduced
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Establishes a statewide healthcare cost control system to make medical care more affordable for Californians.
    • Requires cost targets to be adjusted when prescription drug costs grow faster than overall healthcare costs.
    • Creates sector-specific cost targets for different healthcare providers and regions starting in 2026.
    • Mandates public reporting of healthcare cost performance data to increase transparency.

    Summary

    Assembly Member Patterson proposes modifying California's health care cost target system to account for prescription drug expenditure growth. The legislation would require the Office of Health Care Affordability to adjust cost targets for providers and integrated delivery systems when prescription drug costs are projected to increase faster than established targets.

    The bill builds upon the existing California Health Care Quality and Affordability Act framework, which authorizes the office to analyze market trends and set cost growth benchmarks. Under the new provisions, health care entities could receive adjusted targets based on documented increases in pharmaceutical spending, similar to current allowances for labor cost growth. The office would validate adjustment requests through supporting documentation and retain audit authority over submitted data.

    This change adds prescription drug costs as a specific factor the board must consider when developing its target-setting methodology, alongside existing elements like economic indicators, population demographics, and historical cost trends. The adjustment mechanism would apply starting with the 2026 enforcement period, following the 2025 reporting baseline year established in current law.

    Key Dates

    Next Step
    Referred to the Assembly Standing Committee on Health
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Health
    Hearing has not been scheduled yet
    Introduced. To print.
    Assembly Floor
    Introduced. To print.
    Introduced. To print.

    Contacts

    Profile
    Cecilia Aguiar-CurryD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mia BontaD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Dawn AddisD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    0 of 16 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Cecilia Aguiar-CurryD
    Assemblymember
    Committee Member
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Profile
    Mia BontaD
    Assemblymember
    Committee Member
    Profile
    Dawn AddisD
    Assemblymember
    Committee Member
    Profile
    Joe PattersonR
    Assemblymember
    Bill Author
    Profile
    Juan CarrilloD
    Assemblymember
    Committee Member
    Profile
    Kate SanchezR
    Assemblymember
    Committee Member
    Profile
    Pilar SchiavoD
    Assemblymember
    Committee Member
    Profile
    Mark GonzalezD
    Assemblymember
    Committee Member
    Profile
    Maggy KrellD
    Assemblymember
    Committee Member
    Profile
    Darshana PatelD
    Assemblymember
    Committee Member
    Profile
    Celeste RodriguezD
    Assemblymember
    Committee Member
    Profile
    LaShae Sharp-CollinsD
    Assemblymember
    Committee Member
    Profile
    Catherine StefaniD
    Assemblymember
    Committee Member
    Profile
    David TangipaR
    Assemblymember
    Committee Member

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Joe Patterson
    Joe PattersonR
    California State Assembly Member
    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

    Key Takeaways

    • Establishes a statewide healthcare cost control system to make medical care more affordable for Californians.
    • Requires cost targets to be adjusted when prescription drug costs grow faster than overall healthcare costs.
    • Creates sector-specific cost targets for different healthcare providers and regions starting in 2026.
    • Mandates public reporting of healthcare cost performance data to increase transparency.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Joe Patterson
    Joe PattersonR
    California State Assembly Member

    Summary

    Assembly Member Patterson proposes modifying California's health care cost target system to account for prescription drug expenditure growth. The legislation would require the Office of Health Care Affordability to adjust cost targets for providers and integrated delivery systems when prescription drug costs are projected to increase faster than established targets.

    The bill builds upon the existing California Health Care Quality and Affordability Act framework, which authorizes the office to analyze market trends and set cost growth benchmarks. Under the new provisions, health care entities could receive adjusted targets based on documented increases in pharmaceutical spending, similar to current allowances for labor cost growth. The office would validate adjustment requests through supporting documentation and retain audit authority over submitted data.

    This change adds prescription drug costs as a specific factor the board must consider when developing its target-setting methodology, alongside existing elements like economic indicators, population demographics, and historical cost trends. The adjustment mechanism would apply starting with the 2026 enforcement period, following the 2025 reporting baseline year established in current law.

    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

    Key Dates

    Next Step
    Referred to the Assembly Standing Committee on Health
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Health
    Hearing has not been scheduled yet
    Introduced. To print.
    Assembly Floor
    Introduced. To print.
    Introduced. To print.

    Contacts

    Profile
    Cecilia Aguiar-CurryD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mia BontaD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Dawn AddisD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    0 of 16 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Cecilia Aguiar-CurryD
    Assemblymember
    Committee Member
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Profile
    Mia BontaD
    Assemblymember
    Committee Member
    Profile
    Dawn AddisD
    Assemblymember
    Committee Member
    Profile
    Joe PattersonR
    Assemblymember
    Bill Author
    Profile
    Juan CarrilloD
    Assemblymember
    Committee Member
    Profile
    Kate SanchezR
    Assemblymember
    Committee Member
    Profile
    Pilar SchiavoD
    Assemblymember
    Committee Member
    Profile
    Mark GonzalezD
    Assemblymember
    Committee Member
    Profile
    Maggy KrellD
    Assemblymember
    Committee Member
    Profile
    Darshana PatelD
    Assemblymember
    Committee Member
    Profile
    Celeste RodriguezD
    Assemblymember
    Committee Member
    Profile
    LaShae Sharp-CollinsD
    Assemblymember
    Committee Member
    Profile
    Catherine StefaniD
    Assemblymember
    Committee Member
    Profile
    David TangipaR
    Assemblymember
    Committee Member