Healthcare spending slowed in 2005

According to CMS, healthcare spending in 2005 grew 6.9 percent to $2 trillion--the slowest growth pace in 6 years. CMS credits less expensive generic drugs as a reason for the slower growth rate. In addition, states had a hand in lowering costs, as they worked together to negotiate lower prices for prescription drugs covered by Medicaid. Hospital spending, however, increased by 7.9 percent in 2005, which is roughly the same as other years. In addition, spending on nursing home care care received at physician offices and clinics also rose. Economists note while the slow in spending is good news, it's not likely to last, as more people demand expensive lifesaving medical care.

For more on CMS's findings:
- check out this AP report [1]

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