This situation was also due to slower growth in prescription drugs. Other categories that reported slower growth include: physician and clinical services, home health care, and other professional services.

Regarding prescription drug spending, the value increased 5.8%. For the previous year, the increase was of 8.6%. The reason for this category's evolution is Medicare drug spending significant deceleration, along with generic drugs increased use. Use of brand name drugs was slowed down by a proliferation of tiered-copayment benefit plans. Also, the number of new drugs introduced on the market was lower than previous years. However, out-of-pocket spending for drugs has increased higher than private health insurance spending has.

Hospital spending is probably the most important category of national health care expenditures, as it represents almost one third of total health care spending, and 31% of national health expenditures. Hospital spending has increased 7.9% in 2005, the same value reported for...
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