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IN BRIEF : Auto Makers Cite Health Cost Rise

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Associated Press

U.S. auto makers said they would spend more than $4.7 billion this year insuring the health of their employees.

Officials of General Motors Corp., Ford Motor Co. and Chrysler Corp. say rising health care costs and use of insurance plans have pushed up health-care spending in 1988.

“It’s the system in general, costs are escalating on all sides,” Ford spokeswoman Linda Becker said. “It’s not just coming from the auto companies.” Becker estimated that Ford would pay out more than $1 billion for health care in 1988, up from $920 million in 1987.

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GM spokeswoman Patricia Molloy declined to estimate how much the No. 1 auto maker would spend in health care, but said there is a trend toward increasing costs. GM spent $2.9 billion on health care last year.

Chrysler’s Lloyd Northard said comparing 1987 and 1988 costs was difficult because Chrysler acquired American Motors Corp. in 1987. Nevertheless, he said such costs were rising about 15% annually, and Chrysler estimated it would spend more than $700 million for employee health care.

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