November 9, 2007
The Case of the Health-Insurance Dropouts
Between 1974 and 1982, the RAND Corporation conducted one of the most ambitious social-policy experiments in American history. In six towns scattered across the country, participants were randomly assigned to a standard (for that era) fee-for-service health-insurance plan or into one of several experimental "cost sharing" plans, where deductibles and co-payments forced people to pay out-of-pocket for many of their medical expenses.
The study's marquee discovery — which has
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