ABSTRACT
This chapter proposes definitions for the key terms and explain how each concept relates to the idea of defining basic benefits using necessary-care guidelines. The scope and significance of the debate has increased substantially of late because of ever-rising health care costs, increasing concerns about inequitable access to care, and mounting evidence that inappropriate and unnecessary care continues to be delivered to patients in significant quantities. The notion of necessity as it pertains to health care rationing is not completely captured by commonly used words like "beneficial," "effective," or "appropriate." Indeed, it is clearly possible for a medical service to be beneficial or appropriate without being truly necessary. The critical term "basic benefit plan" has also been used inconsistently in the health policy debate. On its face, basic benefits would appear to denote a minimum or fundamental level of health insurance coverage.
