To curb soaring healthcare expenses, California has imposed a 3% annual cap on price hikes by doctors, hospitals, and health insurance companies, effective 2029. The Health Care Affordability Board approved this measure to combat California’s 5.4% healthcare cost increase over the past two decades, which outpaced income growth. The cap will be phased in over five years and enforced by the Office of Health Care Affordability, with potential fines for non-compliance. Despite support from the healthcare industry for a cost target, they argue the 3% cap is unsustainable, citing rising expenses like worker salaries and a new $25 minimum wage for healthcare workers.