A Washington Post article points out that in America, health-care providers have considerable ability to set the prices at their will, so they set them high.
So, a capitalistic system can drive prices up as the goal is to make as much money as possible. The restraint on that is suppose to be the free-market system, competition. I think there are ways we can see that we have hindered competition.
1. We limit how many medical colleges there are. I've never understood why.
2. We have liberal patent laws. There is only one source for each medicine for too long of a time. The patent laws should allow the inventor to get a head start, but not a monopoly.
3. Licensing restricts competition. There might be places where we over license.
4. If you are going to a doctor, you have to select from the list of doctors affiliated with your insurance. That's usually a pretty broad list, I suppose, still, it cuts out some that otherwise might be the low bookers.
There are other forces that are taking the free-market effect out of our system, but those four items are a good start.
http://www.washingtonpost.com/blogs/wonkblog/post/why-an-mri-costs-1080-in-america-and-280-in-france/2011/08/25/gIQAVHztoR_blog.html
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