The first of two hearings on the topic of health care costs, their effects on the economy, and ways to curb costs was held in Washington, D.C. Testimony was heard from representatives of Chrysler Corporation, Ford Motor Company, American Farm Bureau Federation, Washington Business Group on Health, American Association of Retired Persons, American Hospital Association, American Medical Association, National Association for Home Care, and Health Insurance Association of America. Each panelist described the effects of rising health care costs on his or her organization or its members. Issues included shifting costs from one group to another while actual health care costs increase; prospective payment systems and hospital rate review commissions to curtail hospital costs; federal tax reductions for health insurance premiums; the possibility of health care rationing; a possible national commission on health care costs; Medicare and Medicaid reimbursement for home care expenses; preferred provider organizations; and health maintenance organizations. The second hearing was held in Cedar Rapids, Iowa. Testimony was heard from 23 individuals and organizations; four panels represented the perspectives of consumers, health care providers, funding sources, and organizations involved in future planning. While many of the issues addressed were the same as in the first hearing, new topics included rural hospital cooperatives, the revision of business insurance plans, and company-provided preventive health care for employees. (CB)