Healthcare spending in the United States has increased four-fold since 2000 and continues to rise at unsustainable rates, while patients are not achieving better outcomes. State governments play an important role in providing more efficient healthcare that is proven to work for patients. It is important for states to understand the key drivers of healthcare costs to inform purchasing decisions and reduce spending.

The Peterson-Milbank Program for Sustainable Health Care Costs helps states analyze cost trends and set benchmarks to guide policy- or market-based solutions, to address the rising cost of healthcare. The program equips participating states with financial support for in-depth analysis of cost factors and technical assistance to create lasting change.

Setting targets for the growth of healthcare costs can be a particularly critical tool in making healthcare more affordable and sustainable. The Peterson-Milbank program has paved the way for states to begin reigning in healthcare spending, laying the groundwork for California’s creation of an Office of Health Care Affordability and increasing to 20% the share of the U.S. population living in a state with healthcare cost growth targets.

The second phase of the Peterson-Milbank Program, which runs through 2024, supports identifying and implementing solutions to reduce the growth of healthcare costs in states.