Health Care Spending Rises at Lower Rate

Health care spending rose 6.1% in 2007. But this increase was the smallest since 1998, the Associated Press reported January 6. The primary reason for a slower increase was more use of generic drugs. Several things swelled the use of generics. Insurers charged less for generics and more for brand names. Major retailers offered generics for very low prices. And a few major brand-name drugs lost patent protection. Competitors then offered generic copies for lower prices.