Bouthevillain and Hervé examine the policy problems posed by the expansion of health expenditure in France and in other developed countries. They provide a concise overview of the main features of the different health-care systems and consider some aspects of insurance theory that apply to...

In all four countries health care expenditures grow while the revenue remains at the same level or even shrinks in many cases. Due to medical progress, ageing and many other factors the gap is widening over time. The pay-as-you-go approach is running against limits either with rising employer...