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February 2010

Producing disease-based price indexes

Ralph Bradley, Elaine Cardenas, Daniel H. Ginsburg, Lyubov Rozental, Frankie Velez

Using a total-expenditure scope and adjusting for utilizations under a treatment concept for measuring health care costs slows down the rate of growth of medical prices; the downside is that most of the saving is seen in insurance benefit payments and not in out-of-pocket payments or lower insurance premiums for consumers.

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