The Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services convened on May 1, 2025, to discuss critical issues surrounding the implementation of the Office of Consumer Affairs (OCA) and its impact on healthcare costs in California.

During the meeting, a key concern was raised regarding the effectiveness of the OCA in meeting its primary goal: reducing healthcare costs for patients. A committee member expressed skepticism about whether the OCA's objectives would be realized, highlighting that the current targets do not account for significant factors such as seismic safety mandates and inflation. The member warned that without proper consideration of these elements, healthcare providers might face impossible spending limits, leading to potential service cuts or penalties that would ultimately burden patients.

The discussion also touched on the issue of access to healthcare. The member pointed out that access is already a significant problem in California, exacerbated by the OCA's targets. A specific example from San Diego was cited, where an insurance company used these targets as justification to discontinue contracts with a local hospital, leaving many residents scrambling for alternative healthcare options.

The meeting underscored the urgent need for clear metrics to measure whether patients are actually experiencing reduced healthcare costs. As the subcommittee continues to evaluate the implications of the OCA, the potential consequences for both healthcare providers and patients remain a pressing concern. The discussions highlighted the importance of addressing these challenges to ensure that the intended benefits of the OCA are realized without compromising access to essential health services.