In 1994, 565 economists sent U.S. President Bill Clinton a letter warning against the economic consequences of price controls that played such a prominent role in his health care reform plan.

The price controls included mandated fee schedules for fee-for-service medical plans, prospective budgets for regional health alliances, increases in health insurance premiums tied to the cost of living, and price ceilings on prescription drugs. Discuss the economics of price controls. Under what circumstances do they accomplish their intended purpose? When do they fail?