The ineffectiveness of health cost containment policies in France

Economic Note / March 2007

In order to contain the cost of public health insurance, public authorities in France have implemented various rationalization plans with the hope of restoring the balance of its accounts. In the face of the ineffectiveness of these plans, they have introduced – especially since 1996 – a multitude of health cost containment measures as well as measures of control over healthcare delivery to patients. Yet, these measures also turn out to be ineffective and deficits are chronic. In the setting of the Social Security monopoly, these measures are, on the other hand, likely to render the overall health system more inflexible and bureaucratic at the expense of patients.