Article: SPENDING ON HEALTH CARE RISES 7 PERCENT HOSPITALS, DRUG COSTS CONTRIBUTE TO FASTEST ACCELERATION IN 12 YEARS

Despite the efforts of managed-care companies to control costs, US health care spending rose 7 percent in 2000, the fastest increase in more than a decade.

Federal researchers said that 7 percent was not the biggest single jump ever in one year. But they said that considering health care spending grew just 5.7 percent in 1999, it was the fastest year-to- year acceleration in 12 years.

"This very well may be the end of an era" when managed care kept costs in check, said Katharine Levit, director of the National Health Statistics Group, which conducted the study along with the Centers for Medicare and Medicaid Services. "We have had a very unusual set of circumstances since 1992. Now we are ...

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