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To: Ahda who wrote (10972)	4/29/1998 10:07:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 116944

Darlene, Interesting you mention medical cost inflation. I have to wonder if AG even uses this to determine inflation. Afer all, much of it is political and governmental in that Medicare, medicaid, social security driven. Maybe too hot to handle. Jim

To: Ahda who wrote (10972)	4/29/1998 10:53:00 PM
From: Terry Rose	Read Replies (2) \| Respond to of 116944

Darleen, I work at an indigent health care clinic and our largest cost after payroll is our pharmacy. Although we get a lot of help from some of the drug companies which have indigent programs which will pay for the medicine if the patient qualifies, our pharmacy bill is pushing 1 million dollars annually. Fortunately, since our clinic is about 1 mile from the border with Mexico the patients can buy their medications there at a fraction of the cost in the U.S. However this now poses a risk since there is a new state law which prohibits bringing in medicine without a prescription written by a Mexican physician. So much for free trade. As far as cost increases in the private health care sector, one of my classmates is the medical director of Humana in Austin, Texas. I will give him a call and find out what inflationary forces are brewing in the HMO's and post afterwards. No doubt it will be higher than the 2% rate of increase in health care costs quoted by the government. Terry,