In our judgment, this
PHCE-FWPI is a more appropriate measure of medical price inflation associated with PHCE than two other available indexes--CPI or personal consumption fixed-weight price index.
Average payments per user are simply payment amounts divided by the number of users.(1) Actual payments per user are deflated using the
PHCE-FWPI to produce constant dollar payments per user.
(PHCE-PWPI) as a toll to deflate personal health care expenditures per capita (construction of
PHCE-FWPI is discussed in a later section).