Price Controls or Managed Competition? Lessons for California

October 1, 2018

This report examines the ongoing, mostly state-based efforts aimed at lowering health care prices. It asks whether there are lessons California can learn from these experiments as well as limitations to importing similar practices into the state and expecting the same results. It also explores whether reinvigorating managed competition—a “made in California” alternative that tries to reduce total health care costs while improving quality of care—has the potential both to moderate prices and avoid the drawbacks of price controls.