California Leads the Way in Health Care Cost Control: Capping Increases and Making Naloxone More Affordable

The Office of Health Care Affordability has capped health care cost increases in California, marking a nation-leading effort to control rising costs and make critical care more affordable for people. Starting in 2025, the cap will be phased in over five years, with a target of 3% initially, based on the average annual change in median household income in California between 2002 and 2022.

Governor Gavin Newsom stated that making quality health care affordable is a top priority for his administration. This action is an important first step towards curbing outrageous health care costs and making healthcare more accessible. The cap will save lives by allowing people to access preventative care without being driven away by high costs.

In addition to the cost cap, Governor Newsom announced that the state’s CalRx Naloxone Initiative has partnered with Amneal to bring down the cost of naloxone to just $24 per pack for the state’s Naloxone Distribution Project. This is a significant decrease compared to current market prices and aims to make Californians’ lives more affordable and healthier.