To call the way health care is organised and delivered in the United States a system is charitable, at best. The arrangements under which most Americans today receive medical services are a patchwork based more on historical accidents and political compromises than on any organised thought process. That the finest cutting-edge scientific and medical establishment in the world can have arisen from such chaos strains credulity hardly less than the rise of life itself from the primordial ooze. For example, a majority of Americans—though the percentage is shrinking all the time—receive health insurance coverage through their employers. In 1994, the last year for which statistics are available, 64% of Americans under age 65 (more on those over that age in a moment) enjoyed health insurance financed in full or in part by the employer of one of the family members. Yet employer-provided insurance is essentially a quirk of history—it began during World War II when companies were prohibited from raising wages to attract workers from a pool shrunken by the armed forces. Instead, companies began offering fringe benefits, and hospitalisation insurance became a popular job perk. But as more and more members of the workforce were receiving health insurance coverage, enabling them to pay for the increasing number—and increasing cost—of medical miracles, those in retirement were being left further and further behind. In 1965 Congress sought to remedy that by creating Medicare, the federal health programme for the elderly (and, since 1972, some disabled individuals). In 1995 Medicare provided health coverage to 37 million people—one of every seven Americans (figure 1). Medicare remains yet another conundrum in the US health care system. Although highly popular with its beneficiaries, it offers an increasingly meagre package of benefits. For instance, it provides virtually no coverage for outpatient prescription drugs, a major expense for most elderly individuals, pays for few preventive services (screening mammography benefits were added only in 1991), and requires large amounts of cost-sharing from a population in which three-fourths have annual incomes of less than $25 000. For that reason, two-thirds of beneficiaries purchase private Medicare supplemental insurance policies, known as Medigap. Medicare represents a conundrum in another way. While the US health care system is primarily private, the federal government, through Medicare, actually exercises substantial influence by virtue of the dollars it pays to health care providers. For example, Medicare pays nearly a third of the nation’s hospital bill and nearly a quarter of physician fees. Medicare also pays for nearly half the costs of the nation’s bill for graduate medical education. Taxpayers also fund health care services to the poorest of the poor, through the joint state-federal Medicaid programme. Largely an adjunct to cash-assistance programmes, in 1995 Medicaid covered 37 million Americans, half of them children. Medicaid also covers 4 million senior citizens, most of whom are also eligible for Medicare, because Medicaid pays for long-term nursing home care, which Medicare does not cover. Medicaid’s growth in recent years—mostly the result of congressional Democrats’ efforts to expand eligibility beyond the traditional welfare population—have helped keep the percentage of Americans without any health coverage from rising even further. Without Medicaid expansions, an estimated 9 million more Americans would currently lack coverage for health expenses. Still, some 17% of Americans under age 65—about 40 million people—have no health insurance at all. And ironically, in a nation where the public believes that people