Mark Perry brings to our attention this great story about health care markets working. In this case, the market works because it is completely “off the grid”; that is, completely out of the insurance, Obamacare, Medicare world. You’ll note from the article that the entire difference between the actually charged $85 for the exam and the typically charged $300 for the exam is used to cover insurance paperwork labor.
If we would just treat health care insurance like all other forms of insurance (auto, home owners, etc.) then most (all?) of the cost inflation problems would go away.