We have lots of examples of governments doing this with ranges from poor to fair to good results. To my knowledge, the US is the only widescale attempt at market-based health care, with results of 2x the OECD average of health care cost per capita [1].
But it’s hardly a market-based system with the third party payers. Consumers aren’t making informed decisions about what they buy, have little ability to comparison shop, and state-level regulations intentionally limit the number of providers in a market. With those attributes, the poor outcome of the “market” system is entirely predictable. We need to go in one direction or the other, but having the worst elements of centrally managed care and the worst elements of a market solution makes for rotten outcomes.
Lots of ER visits aren't that dire. There are three hospitals within range if I broke my arm. I'd totally comparison shop if it were even remotely possible to call each up and ask how much. But getting even an estimated price for x-ray and bone set over the phone? Hahahahaha.
A lot of the regulations are there to protect existing players in the market as well. It seems that the market-based approach degrades when it comes into contact with democracy, probably because the equilibrium the market is trying to achieve is incompatible with our values.
19th century healthcare was relatively affordable, or at least the costs were streamlined and transparent.
Perhaps keep 3rd party insurance but ban it as an employment perk, that would incentivize the market to play to the greater public instead of just white collar salaried employees.
[1] https://read.oecd-ilibrary.org/social-issues-migration-healt...