So it is insurance that creates the cost problem in medical treatment. The government solution is to force everyone to buy insurance. Makes total sense! If your only goal is to put the government in charge.
Don’t get me started on prescriptions. I have finally arranged life so that most of mine are on the dreaded Walmart $10 list. Except for the one that I have to order from Canada to get a decent price.
I believe the situation is more complex. If it were just the insurance companies, they'd be making enormous profits. They are profitable, but not to the extent that one would think.
The problem is a combination of cost shifting (paying for people who don't pay, or who are bad insurance risks) and the presence of multiple middle-men.
The great Ludwig von Mises wrote in his "Human Action" that the failure of socialism was one of ineffiency due to the fact that prices were centralized and thereby inhibited the natural pricing mediaton of supply and demand.
If you look at US medicine, not only now, but for the past generation, you'll see that no one knows what anything costs. It all depends on who you ask, and what pricing club is your vehicle for interacting with the vendor. That fits von Mises' observation very well.
insurance inflates the price the same way college loans inflate the price of college tuition
Oklahoma City hospital posts surgery prices online; creates bidding war
The truth is, the reason medical costs rose to the point they did even before Bozocare came to be, was because of medicare, which in turn sparked all type of other insurance. Docs began abusing Medicare so prices went up, people(Unions) started demanding companies pay for their insurance so prices went up. Before that there was catastrophic insurance, but not full coverage the way we have today, at least not for the average person.
True story, in 1946 I was 4 years old, my mother was a single mom because my dear daddy decided to run off with another woman when I was 3. Mom worked at a place called Westco Water paints and, at the time, was paid less than the men who worked there doing the same job, back in the day these things really did exist. At any rate my tonsils always acted up in the winter, this was during a time period when removing tonsils was almost an industry in itself. She would call Docs and they would make house calls and she could afford to pay them, even though we lived in a trailer. Bottom line, they took me to a hospital, took out my tonsils, I stayed in the hospital 3 days(they kept you longer in those days)and my mother, without insurance, was able to pay for it even on her low wage, of course she had to have a payment plan, but still she paid for it, kept us fed(me and my brother and her), and housed and didn't have to declare bankruptcy.
That was how it was back in the day before Medicare and other Insurance drove medical costs sky high.