California Approves Financial Penalties Of Up To 125% For Exceeding Health Care Spending Targets

California's Health Care Affordability Board approved a financial penalty framework in late August 2026 for health plans, hospitals, and physician groups that exceed state health care spending growth targets. Under the framework, the California Office of Health Care Affordability (OHCA) can impose penalties ranging from 0% to 125% of the amount spent above the applicable target. Penalties could begin as early as 2028, although organizations must first receive technical assistance and go through a performance improvement plan before financial penalties can be imposed.

The penalties are intended to enforce California's statewide health care spending growth targets, approved in . . .