Competition and Cost Containment

Abstract

Over two years have passed since Prof. Alain Enthoven of Stanford University described in nontechnical language the rationale of his Consumer-Choice Health Plan (CCHP).¹ The proposal, developed initially at the request of Secretary Califano, of the Department of Health, Education, and Welfare, failed to win the Administration's support, but in the months since it began to circulate, it has won adherents in the Congress^{2 3 4} and among businessmen and has informed a growing number of economists and other social scientists concerned with the formulation of public policy for health care and regulation.With rising health-care expenditures likely to exceed $240 billion . . .