CA AB2817

Creates the Office of Health Care Quality and Affordability as an independent public entity to analyze health care market costs, develop data-informed policies to lower costs, and enforce health care cost growth targets.

Establishes a governing board with 11 members appointed by the Governor, Legislature, and Attorney General, requiring members to have expertise in health care economics, delivery, management, finance, or related fields, with strict conflict-of-interest provisions.

Requires health care entities (payers and providers) to report data on total health care expenditures; board shall establish statewide cost growth targets beginning in 2022 and sector-specific targets beginning in 2023, based on economic indicators and historical data.

Authorizes the board to enforce cost growth targets through graduated penalties including technical assistance, public testimony requirements, corrective action plans, civil penalties, and rate adjustments, with penalties deposited into the Health Care Quality and Affordability Fund for return to consumers and purchasers.

Requires the board to monitor health care market consolidation through merger and acquisition reviews, develop quality measurement standards, advance value-based payment models, and protect labor standards and workforce supply in the health care industry.