That's a very good question. IIRC, the current mess with inflated medical bills started when Medicare placed caps on some fees that were below the actual cost.

That's a very good question. IIRC, the current mess with inflated medical bills started when Medicare placed caps on some fees that were below the actual cost. So the hospitals had to recover the difference from those who are not covered. This killed transparency, promoting even more cost inflation through bullshit admin positions. So now it's a tough spot. On once hand, if you apply the Medicare caps universally, many hospitals will go belly up. If you remove the caps and let them bill whatever they want, you will end up with a rapidly growing hole in the budget. I would say, instead we need a solid system of rules on what you can and cannot bill, some auditing body and a way for the patients to dispute inflated bills at an affordable cost. Whether it goes out-of-pocket or from a tax-filled fund is IMHO not as important as the cost audit/dispute mechanisms.