Although this approach has been demonised in America it merely makes explicit therationing in any medical system through the decisions of insurers and funders.
The point of managed care was to introduce a degree of rationing into a health-care system that, by the late 1980s, was suffering from inflation of 15% a year or even more.
Price rationing and a functioning price system are the clear-cut winners for maximizing benefits between producers and consumers when these two sides freely and willingly engage in market behavior.
"The current system is dogged by means-testing, a postcode lottery of charges, a rationing of services and poor standards and nothing in the plan looks like it will address any of these concerns, " its general secretary Dot Gibson said.