What President Clinton Can Learn from Canada About Price Controls and Global Budgets

As part of his health care plan, President Clinton has proposed price controls on health insurance premiums and "global budgets" that try to limit how much people can spend on health care each year.  Capping the supply of care through budget and premium limitations, as in the Canadian system, will lead to lower costs only to the extent that they lead to shortages of technology, waiting for treatment and reduced response to the health care needs of Americans.