But the rise was almost entirely in traditional insurance.

Under the Clinton plan, companies would have to continue to offer the traditional insurance through the regional alliances.

Health maintenance organizations are supposed to provide care at a lower cost than traditional insurance.

The plans, for example, provide annual checkups, which are not covered by most traditional insurance.

What then is the essential difference between direct and traditional insurance?

A patient requiring the same equipment in traditional insurance avoids such a process but would be liable for at least 20 percent of the cost.

It would also offer traditional insurance, in which patients could choose any doctor and pay 20 percent of the charges.

He said traditional insurance had lost ground, dropping to 42 percent of health plan members last year from 53 percent in 1991.

Providing assurance requires financial resources that go beyond traditional insurance.

Until now, most patients with chronic or unusual medical problems have been able to select traditional insurance.