OHCAT Reports Underscore Urgent Need for Healthcare Reform

Trenton, NJ - The New Jersey Coalition for Affordable Hospitals issued the following statement in response to the Office of Health Care Affordability and Transparency reports published today:

“The OHCAT reports issued today underscore the urgent need to address New Jersey’s healthcare affordability crisis. From 2022 - 2023, the most recent year of data available, healthcare spending rose by 6.1%, far above the rate of inflation and the 3.5% spending growth target. They also affirm what this Coalition and national research has long shown – rising costs are driven by prices negotiated by healthcare providers, not by patients using more healthcare.

“We can only assume these trends have continued from 2023-2025, and will continue in coming years unless the state takes action. Without enforcement, which would have been authorized by Health Care Accountability Legislation A-5376/S-4299, there will be no consequences for exceeding the benchmarks and no formal path for holding the healthcare industry accountable to promoting affordability.

“As we start the new year, more families are facing the terrifying reality of living without the safety net of insurance, due to being priced out of the public marketplace, and those who do have coverage are staring down higher out-of-pocket costs and a greater portion of their income going towards health insurance.

“We cannot continue down this path, the legislature must take action on A-5376/S-4299 to provide much needed relief to working families and put a stop to the unsustainable rise in healthcare costs. We look forward to working alongside the Sherrill Administration to make much needed reforms to our healthcare system.”

 The New Jersey Coalition for Affordable Hospitals, which formed in 2022, includes 32BJ SEIU, the New Jersey Education Association, Citizen Action, New Jersey Policemen’s Benevolent Association, Communication Workers of America, New Jersey Firefighters Mutual Benevolent Association, Health Professionals and Allied Employees, the Rutgers chapter of the American Association of University Professors, the State Troopers Superior Officers Association, BlueWave NJ, American Federation of State, County and Municipal Employees, the Professional Firefighters Association of New Jersey, the New Jersey Working Families Party, New Jersey Municipal Managers Association, Hotel and Gaming Trades Council and Teamsters Local 469.