The model that used to work, and still would if we hadn't made it practically illegal, is the 80%/20% high-deductible insurance model. That model gives the con

The model that used to work, and still would if we hadn't made it practically illegal, is the 80%/20% high-deductible insurance model. That model gives the consumer the incentives to keep consumption levels reasonable, but if they must consume lots (accidents, serious illness) then the insurance company kicks in. Young people today have never experienced such a system, but for decades it was the system. We started moving away from it in the 90s, and completed that move away from it in 2011. Coincidentally (or maybe not so-coincidentally) we've had faster-than-inflation healthcare cost increases since then.