HEALTH

Kaiser Permanente Slows Rate Hikes: Kaiser, which insures 2.3 million people in Southern California, announced a 7.1% average rate increase for the 1993 contract year in the region. That rate of increase is down from a 10.6% hike in 1992 and a 14.2% raise in 1991, which sent shock waves through the health care market. “It’s quite possible that our downward trend will help slow the spiraling health care costs experienced in Southern California during the past few years,” said L. Jerome Ashford, Kaiser Foundation Health Plan manager. After several years of heavy capital investment and strong membership growth that forced the HMO to go to outside contractors for more services, Kaiser says it expects that future rate increases will return to earlier, slower levels.