Exactly. We don't have a cost problem, we have a supply and demand problem. Larger supply of doctors, nurses, generic drugs and competition will naturally drive down price.
All of the other mechanisms in place prevent that.
Don't forget collusion - my dentist apparently has lots of slack in her business, I am constantly getting calls to book an appointment. I'll let you guess whether she's offered more competitive pricing to increase her bookings....
Given that very few of her customers actually pay for their visits ... do you think that would help, or just be a huge obstacle in her negotiating with insurance providers ?
All of the other mechanisms in place prevent that.