Abstract
In “Policy Options and the Impact of National Health Insurance,” Newhouse, Phelps, and Schwartz concluded that any national health insurance program which did not provide for high user copayments, particularly for ambulatory services, would swamp, and ultimately wreck, the health care delivery system, particularly for ambulatory services. This paper presents a detailed critique of their work. Three major points of criticism are raised:- First, Newhouse et al. have engaged in some questionable methodological practices. Second, they fall into a serious contradiction in gathering evidence to support their basic postulate. Third, they adopt a unidimensional view in proposing solutions to the problems which they predict will arise. From these criticisms, the conclusion is drawn that Newhouse et al. failed to prove their case.
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