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The Nation - News from Aug. 2, 1985

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Health care spending increased 9.1% during 1984, the first time in 20 years that medical inflation has dropped below double-digit levels, the government reported. The Health and Human Services Department said that $387.4 billion had been spent on health care, contrasted with $355.1 billion in 1983. The Reagan Administration credited the change to cost restrictions on Medicare and Medicaid and to more competition in the health care industry.

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