It leads to unnecessary inefficiencies. e.g. different insurance companies might end up paying different prices which affects premiums. Insurance companies are

It leads to unnecessary inefficiencies. e.g. different insurance companies might end up paying different prices which affects premiums. Insurance companies are inherently incentivized to maximize their costs which is one of the (if not the) biggest flaws of the US healthcare system. Other countries which have entirely privatized systems (even to a larger degree than the US) like the Netherlands solve the by directly regulating prices.