For those of you thinking "invisible hand of the free market corrects all wrongs," consider that there is no market function that sets the price of insurance. None at all. Insurance providers do not have to take the price of anything at all into consideration when determining how much to charge their customers. These guys can charge whatever they want because there is no economic force that smacks them down when they charge too much.
Doctors long ago realized they could bleed the insurance companies for millions without stirring anyone's attention - the insurance companies didn't bat an eye, they're making so much. But that's not the reason medical costs are so high. The reason is because so many of us unwashed masses decided we needed insurance, and the insurance companies took us for all we were worth.
This problem does go away with better (read: "any") regulation of the health insurance industry, but it also goes away if we all decide insurance is a stupid idea and we're paying our doctors in cash from now on.
