California’s state government, employers and families are concerned about the affordability of healthcare in California. On one hand, payment and delivery innovations within the Affordable Care Act and private market have the potential to reduce expenditures (McClellan, 2014), but there is a concern that provider consolidation may lead to higher prices (Health Care Cost Institute, 2014; Baker et al, 2014; Robinson, 2011; Berenson et al., 2010). The report forecasts that inflation-adjusted health expenditures per capita are expected to increase by $3,000 per Californian (or 36%) from 2013-2022. Key factors driving forecasted health expenditure growth include gains in real income per capita, medical-specific inflation growing faster than overall economy-wide inflation, an aging population, more people covered by insurance, as well as new technology and delivery system reforms.

View the full Berkeley Forum report here.

Results from the report were also published in The California Journal of Politics and Policy.

Learn more about the Berkeley Healthcare Forum.