ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Tuesday, May 28, 1996                  TAG: 9605290039
SECTION: NATIONAL/INTERNATIONAL   PAGE: A-4  EDITION: METRO 
DATELINE: WASHINGTON
SOURCE: Associated Press 

HEALTH COST INCREASES FELL IN '94 STUDY: SMALLEST JUMP IN 30 YEARS

The nation's rate of spending on health care increased in 1994 at a slower rate than the previous year, a new report says, but there's no proof yet that ``the long-term surge in health care costs is over.''

The increase, 6.4 percent over 1993 levels, was the smallest in more than 30 years.

Health Affairs, a journal published by Project HOPE, reported Monday that the amount spent in 1994 on hospital visits, doctors' and dentists' fees, nursing homes, pharmaceuticals and other health care totaled $949.4 billion. Project HOPE is an international health education organization based in Millwood, Va.

While still substantial, the 6.4 percent rise compares with a 7 percent 1992-93 increase. The percentage of cost rises was in double digits or near double digits in each of the preceding five years, 1988-1992.

``It is still too early to state categorically that the long-term surge in health care costs is over, just based on this two-year analysis,'' said Katharine R. Levit, an author of the report. ``Indicators for 1995, however, show little change from the 1993-94 trend.''

The estimates were made by the Office of National Health Statistics in the Health Care Financing Administration, which is part of the Department of Health and Human Services.

The report also found that:

* Per person spending on health rose from $3,331 in 1993 to $3,510 in 1994. That compares with $2,688 in 1990 and $141 in 1960.

* Medicare spending grew to $166.1 billion in 1994, up 11.8 percent over 1993.

* Spending on hospital care, the largest single component in health costs, ran to $338.5 billion in 1994. That was 4.4 percent above the previous year's and the fourth consecutive year of declining percentage increases.

* For nursing home care, spending rose to $72.3 billion, up 7.8 percent from 1993.

* Spending for physician services grew to $189.4 billion in 1994, up 4.6 percent from 1993, and for dental services to $42.2 billion, up 7.5 percent.

* Drugs and other consumer medical products totaled $78.6 billion in 1994, a 4.5 percent increase over 1993. But the percentage of increase compared with 11.5 percent in 1990.

LENGTH: Medium:   51 lines