We do not currently have a free market in medical care. If we did, the prices would be lower and the government wouldn’t have its fingers in every single medical care pie. Odysseas Papadimitriou lays out what it would be like if we restored a free market medical care system on The Street.
UPDATE: I liked it better before I read all the way through his proposal. It seems that everyone on his plan will die with huge debts to the government loan program. That is a big downside. Also it sets up way too many government strings for it to truly be a free market solution.