Health care spending caps hurt California’s Hispanic communities

OPINION – California is home to one of the most diverse populations in the nation, and nearly 40 percent of our state’s residents—and close to half of all Medi-Cal recipients—identify as Hispanic. Our communities contribute deeply to the cultural and economic fabric of California, yet when it comes to health care access, equity remains elusive. The latest proposal by the state’s Office of Health Care Affordability (OHCA) threatens to make that gap even wider.

Last year, OHCA approved a statewide health care spending growth cap of 3.5% for 2025, with plans to drop that rate to 3% by 2029. While this might sound like a reasonable step toward fiscal responsibility, the reality is far more troubling. These caps fall well below the current rate of inflation and the rising costs hospitals face every day—including the skyrocketing prices of medications and medical supplies, which are climbing at rapid rates. This lack of consideration by the state could turn the spending cap into a zero-sum game, where every dollar more a hospital spends on unavoidable costs—like medications—is a dollar less for everything else that actually improves patient care or hospital sustainability.

For the Hispanic Chamber and the communities we serve, this is not just an accounting issue—it’s a direct threat to health care access, jobs, and economic stability. Many of the hospitals targeted by OHCA’s cap are lifelines for largely Hispanic populations. These institutions don’t just provide medical care; they are major local employers, job creators, and essential pillars of underserved regions often referred to as “care deserts.”

Hispanic communities already face significant barriers in accessing quality care. According to the California Health Care Foundation, Hispanic Californians are more likely to struggle to find a doctor and less likely to use mental health services.

A blanket, one-size-fits-all spending cap fails to consider these realities. It does not account for the unique needs of our communities, nor the economic pressures facing hospitals that care for Medi-Cal populations—especially those in rural or underserved regions. Instead, the cap imposes artificial limits that will likely result in reduced services, delayed access to care, and halted investments in critical areas like primary care, behavioral health, and trauma services. In some cases, it could even force hospitals to close facilities or eliminate programs entirely.

California cannot afford this. At a time when the state is grappling with economic uncertainty and potential federal cuts to health care funding, we should be finding ways to bolster—not burden—our health care infrastructure. Our hospitals need support, not arbitrary restrictions that handcuff their ability to serve those most in need.

Let’s be clear: controlling costs in health care is important. But it must be done in a way that acknowledges the complexity of delivering care in one of the most diverse and expansive states in the country. The OHCA’s approach does not do that. Instead, it threatens to deepen disparities and limit opportunity—especially for Hispanic Californians who already face disproportionate challenges in accessing quality, affordable health care.

The California Hispanic Chamber of Commerce urges state leaders to reconsider this cap and pursue a more equitable, realistic approach—one that protects both our health care systems and the communities they serve. Without thoughtful revision, this proposal will do more harm than good, placing an unjust burden on hospitals, health care workers, and, most importantly, patients.

California can and must do better.

Julian Cañete serves as the President and CEO of the California Hispanic Chambers of Commerce (CHCC).