the system massively overcharges you if you're uninsured, and they do it just because they can. If you're uninsured, you've got no leverage, no alternatives, no nothing. So you get screwed. It's like the shopkeepers who charge twenty bucks for a pair of flashlight batteries after hurricanes. Maybe it's the free market at work, but if so, that's all the worse for the free market.As far as I can tell, it's even worse than the hurricane battery people. I can see how the opportunity to charge $20 for batteries at least generates good incentives. If I'm running the battery store after the hurricane, I'll make lots of money, and that possibility will give me incentives to make sure I have plenty of batteries on hand when people might come to suddenly need batteries.
What beneficial activity is incentivized by insurance companies using their bargaining power to push costs onto the uninsured? I can't see anything comparable here. This looks like a zero-sum game. And then when you consider that the uninsured are likely to be poorer and factor in the diminishing marginal utility of money, it's a negative sum game.