Plain English Breakdown
The source text states adjustments happen upon a showing of projected growth, but does not define the specific frequency or threshold for these showings.
Adjusting Health Care Cost Targets for Drug Costs
This law requires state officials to adjust health care cost targets if prescription drug costs are projected to grow faster than the current target rates.
What This Bill Does
- Requires adjusting cost targets when a provider shows that prescription drug costs will grow faster than applicable rate limits.
- Updates the method used by the board to calculate and approve these adjustments for increased drug spending.
- Makes technical, nonsubstantive changes to goals for community-based perinatal care programs.
Who It Names or Affects
- Health care providers
- Fully integrated delivery systems
- The Office of Health Care Affordability
Terms To Know
- Cost targets
- Limits set by the state on how much health care costs can increase.
- Fully integrated delivery system
- A large group that provides both medical insurance and health services to patients.
Limits and Unknowns
- The bill does not specify exact dollar amounts or percentages for cost adjustments.
- It is unclear how often providers must show that drug costs are rising faster than targets.
- The effective date of the law is not listed in the provided text.