Report: Growth of medical costs slows
Despite a slowdown in 2003, the pace remains ahead of U.S. economic expansion, study determines.
June 9, 2004: 8:12 AM EDT
CHICAGO (Reuters) - The pace of growth in medical costs eased significantly in 2003, but still bounded well ahead of economic expansion, making it among the biggest burdens facing corporate America, a report released Wednesday said.
A sharp slowdown in prescription drug spending growth offset by a steep rise in hospital prices fueled a jump in underlying medical costs of 7.4 percent, well below the 9.6 percent rise recorded in 2002, the study by the non-profit Center for Studying Health System Change found.
The report analyzed health care revenues to hospitals, doctors and for prescription drugs for privately insured individuals, compiled by research group Milliman USA for 2003.