CA AB1474

Requires the Office of Health Care Affordability to adjust statewide health care cost targets for providers or fully integrated delivery systems when prescription drug costs are projected to grow faster than applicable cost targets

Adds prescription drug cost increases as a new factor that must be considered in the methodology for setting health care cost targets, alongside existing factors like labor costs and economic indicators

Amends the California Health Care Quality and Affordability Act, which establishes cost targets to control health care spending while maintaining quality and equitable care

Applies to the existing framework where the board must establish statewide health care cost targets beginning with calendar year 2025, with enforcement starting in 2026