What you've described - sans the incentive part which Raven has explained well won't work - is just a socialistic system that's being used in many countries. Just ask our British friends (ones over 30) just how well such a thing works - they'll be quick to tell you it's horrible.
And it only stands to reason. Anytime you put the government in the middle of any process of any kind, there's going to be a huge amount of bureaucratic waste, graft and corruption. For a good example of the latter, just look at the abused Medicare system we already have. Hospitals and doctors charging for visits and treatments that never took place. And that's probably only the tip of the iceberg of what's actually happened.
Agreed. Socialized health care has been teetering around as our next step in the good ol' (and verrrryyyy old) FDR welfare program that brought us out of the Great Depression. To establish such a health care program would mean that capitalism in the health care industry is a complete failure, and it is necessary for the government to intervene. We DO NOT need to give up more freedom to an already huge political demigod of a government.
Some say Drs. bill excessively for their services. Most of the time, the complainants are the health insurers. On the flip side, Drs. argue that their bills are not paid entirely by the insurer, and they don't recover the customary remaining 20% even 50% of the time, which requires the Drs. to increase their hourly or service fee to reach a median income for their specialty.
Personally, I think the best system would be to completely remove health insurance for a period of 1-2 years (including Medicaid/Medicare), and then determine exactly what an honest working American can pay for a CT scan, or MRI, or other service. Charging $2500 for an MRI and read to me is astronomical. As is $300 for a wheelchair ride to the car after an outpatient procedure.
If we are truly a class-based economic society (working class, lower class, middle, and so on), statistics would indicate that Drs. would profit most by tailoring their services to the middle-class income rate. The government can then subsidize, as opposed to socialize, the lower and working classes to make up the difference, which could be funded by appropriations of present tax revenues. Alternatively, the battle between Dr. and Insurer could then balance itself out in the actual marketplace, as opposed to the present state of the two party "bargain."
Point is, if insurance was out of the picture, even for just a little while, the price of "gas" would come down.
