The existence of a parallel private health care system within a broader public Beveridge system provides an opportunity for patients who are unhappy with the service they receive in the public system. Since higher income people are more likely to have the resources to pay for private treatment than lower income people, many favor restricting the parallel private market on equity grounds. Consider a Beveridge country that abuts another country with a large private health care market (Canada would be a great example). How effective can restrictions on a parallel private health care system be in promoting equity in this context? How effective can such restrictions be when such outside private options are not available?