ABSTRACT
All major proposals for national health insurance (NHI) provide minimum standard benefits both for those now uninsured and for those whose coverage would be altered. Two fundamentally different approaches to cost containment distinguish one group of proposals from another. One emphasizes the need to control providers—doctors and hospitals. The other strategy is keyed on changes in the tax incentives related to the purchase of insurance and on the need for increasing competition among different types of insurance arrangements and delivery mechanisms. The Carter administration's national health plan (NHP) would eventually provide health insurance coverage for all Americans. The administration's hospital cost containment plan would determine reimbursement for hospital services under the NHP. An alternative comprehensive national health plan with a more ambitious timetable for implementation has been proposed by Senator Edward Kennedy. While there are many similarities between the Carter and Kennedy proposals, there are also some significant differences.
