First of all, everything is running remarkably smoothly given the circumstances. The Covid-19 statistics are largely a consequence of people acting individually

First of all, everything is running remarkably smoothly given the circumstances. The Covid-19 statistics are largely a consequence of people acting individually out of self interest and ignorance, yielding negative systemic externalities, and not a dysfunction of the healthcare system. Furthermore, if you think about how insurance risk pooling works, it's quite easy to see how an insurance-backed, profit-motivated healthcare system may not be the best vehicle to address a systemic health problem afflicting the entire population. You may recall AIG as a rough analogue for this situation. Or even entities insuring against natural disasters in California. The government has to step in to prevent failure. And then we have the most obvious counterargument to your flawed thesis: why would labor compensation go up during a recession with high unemployment and considerable attendant macroeconomic instability? Those factors have contributed to dramatically increased substitutability and thus quite naturally suppress wage growth.