AGENCY PROPOSES RISE OF $5‐BILLION FOR HEALTH COSTS
Cost of Living Council on Nov 6 proposes to allow increases in health care bills over coming yr that will cost consumers about $5-billion annually; most important increases will be permitted in hosp bills, which will be allowed to rise avg of 9% and drs' fees, which could go up 4%; council officials emphasize that such percentages are only averages and that there might be wide variations nationally, depending on geography, type of inst and specialty practice of individual dr; drs, dentists and other health practitioners will be limited to 4% total increase, but no fee over $10 can be raised more than $1 in single yr; nursing homes will be allowed annual increase, while large health maintenance orgns will be allowed increases 'consistent with Phase 4 controls on hosps and practitioners'; regulations to go into effect Jan 1; council Health Indus Advisory Com chmn J D Hodgson comments; J A McMahon, pres of Amer Hosp Assn, attacks proposed regulations; says assn will file response with council and raises possibility that it will file lawsuit to prevent regulations from going into effect; AMA exec vp Dr E B Howard says he expects 'mixed reaction' from drs; J D Twiname, dir of council's com on health, comments