Vested Interest - News and Notes - November 2001 Issue

Health Care spending up 7.2 percent, biggest increase in decade

Health care spending jumped 7.2 percent last year – the largest increase in 10 years, a nonpartisan research group announced. Paul Ginsburg, president of the Center for Studying Health System Change, said health care spending has been steadily increasing for three decades, but the annual increases in the mid-1990s were under 2 percent and caused primarily by increases in drug costs. Last year, hospital spending was the major reason for the large increase. Inpatient hospital spending increased 2.8 percent in 2000, compared to 1.6 percent in 1999, and outpatient spending increased 11.2 percent, compared to 8.9 percent in 1999. For the first time in seven years, drug spending rose at a slower rate than the previous year, from 18.4 percent in 1999 to 14.5 percent in 2000, but still accounted for 27 percent of the overall increase. (Liability & Insurance Week – October 1, 2001)

Ergonomics rule delayed

Secretary of Labor Elaine Chao has delayed whether to issue a new federal ergonomics rule or voluntary guidelines to protect workers against ergonomics injuries in the workplace. The reason cited for the delay was that Occupational Health and Safety Administration staff has been too busy with rescue and recovery efforts in the aftermath of the September 11 terrorist attacks. (Liability & Insurance Week – October 1, 2001)

Revamped Ford SUVs rated on Rollovers

According to regulators, the redesigned 2002 four-door, four-wheel-drive Ford Explorer and Mercury Mountaineer posted rollover ratings comparable to other sport-utility vehicles. The latest NHTSA rollover ratings gave lower marks to the rear-wheel-drive versions of both vehicles. On a scale of one to five, with five the safest rating, the four-wheel-drive, four-door Explorer and Mountaineer each scored a three in rollover resistance. That was comparable to other four-door SUVs, including three made by General Motors Corp.: the Chevrolet Trailblazer, the GMC Envoy, and the Oldsmobile Bravada. The real-wheel drive Explorer and Mountaineer received a two rating as did the 2001 four-door, real-wheel-drive Nissan Xterra, and both the four-and rear-wheel-drive Jeep Liberty models, which also have four doors. The 2001 Pontiac Azteck received four stars, the best score yet for a sport-utility vehicle. Pickups and SUVs are more likely to roll over than other vehicles. More than 60 percent of fatalities in SUVs and more than 40 percent of deaths in pickups happen in rollovers. By comparison, 22 percent of car deaths involve rollovers. (Chicago Tribune – October 10, 2001)