The state’s health care spending benchmark is an important tool to measure excessive cost increases. Whether the benchmark should be increased to address inflation sparked much debate at last week’s Health Care Cost Transparency Board (Board) meeting (2/15).

In written comments, hospital and medical industry groups opposed keeping the 2023 benchmark set at 3.2%, arguing that higher health industry spending should be allowed because of inflation. NoHLA and 14 organizations supporting Fair Health Prices Washington submitted a letter to the Board, objecting to the increase and citing the harmful impacts of high health inflation on consumers. The Board was swayed by this advocacy and voted to retain the benchmark until more is known.

The letter included several reasons why the benchmark should not be changed.

• WA’s benchmark is already higher than the majority of other states that set a benchmark for 2023. 
• Currently, there are no enforcement mechanisms in place that would hold an entity accountable for exceeding the benchmark. Though such measures are being considered by the Legislature, they do not yet exist and would not take effect for some time. 
• The Board can acknowledge the unusual post-pandemic inflation trends without adjusting the benchmark by tracking other inflation trends and evaluate whether action is needed later, recognizing that inflation is forecast to drop significantly in 2023. 

The Board voted to hold off on making any changes to the benchmark until there is more data to show the effects of inflation on the state’s health care spending.

During the meeting, former Representative Eileen Cody, who sponsored the legislation that created the Board, was welcomed as its newest member, representing consumers.

Access the Board’s 2/15 meeting materials.