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(16) Retail prescription prices have increased an average of 7.4 percent a year from 1993 to 2003, more than double the average inflation rate of 2.5 percent. (15) baby Between 1995 and baby 2002, the average increase for baby drug expenditures was 15 percent higher than for any other type of health expenditure. (17) Time for Action on Health Care Costs Policymakers and government officials agree that health care costs must be controlled. But they disagree on the best ways to address rapidly escalating health spending. Some favor price controls and imposing strict budgets on health care spending. Others believe free market competition is the best way to solve the problems. Public health advocates believe that if all Americans adopted healthy lifestyles, health care costs would plummet as people required less medical care. There appears to be no single solution to health care's high price tag. Many approaches may be used to control costs. What we do know is if the rate of escalation in health care spending and health insurance premiums continues to grow at current trends, the cost of inaction will severely impact employer's bottom lines and consumer's pocketbooks.
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