California's Office of Health Care Affordability (OHCA) reports Total Health Care Expenditures (THCE) of ~$409B in 2023 (up 8.2% from 2022). A conservative 10% net savings from reduced waste and better pricing yields meaningful relief statewide and at the family level.
Administrative simplification (40%), drug price negotiation (25%), care delivery & coordination (25%), fraud/abuse controls (10%).
Uses OHCA's 2023 total (~$409B) and applies a conservative 10% net savings assumption to show directional impact.
We compute per-capita savings from statewide totals, then multiply by your household size (above). For employer-sponsored families, replacing worker premiums (and typical OOP) with a payroll contribution often yields **~$1,500–$3,500** savings per year (illustrative).
| Metric (family coverage) | Before | After (Payroll-based financing) |
|---|---|---|
| Worker premium contribution | $6,296 / year | $0 |
| Deductibles + copays | Often >$2,000 / year | $0 for covered services |
| Payroll contribution (illustrative) | $0 | $4,800 / year |
| Net change | ~$1,500–$3,500 saved / year (directional) |
Replace the payroll figure with the Board's actuarial rate. For statewide context, CA has **~13.43M households**; a 10% net savings on **$409B** equals **~$41B**, or **~$3,000 per household per year** (directional).
Figures are directional and will be updated with California-specific actuarial modeling by the CCH Board.