I would like to pull $$ out of the hands of the health care system and try to hold them accountable to 'true' market forces. Insurance creates an oasis where the value of a product can 'sun itself', safely separated from actual market forces. Insurance inflates profits so it can propagate itself.
I was with you until the end, there.
The idea that the insurance, pharma, and med device industries are just rolling in cash is simple not factually true. As such, your last assertion carries no legitimacy -- where are the excess profits?
Rather, what happens is more bureaucracy and administration fills the vaccuum, consuming the revenue. It never shows up as profit. This increased overhead is necessary to administer the increasingly byzantine rules necessary to make things "fair", combat fraud, etc.
A far better system with strong market feedback is based on the HSA model, catastrophic insurance with high deductibles, and a fully-funded FSA to cover the deductible that rolls over annually.
This was the Whole Foods model, and everyone loved it. Employer, employees, health care providers. The total cost per employee was substantially less than traditional insurance, and the insured had MORE coverage -- basically 100% coverage up to the deductible through the funded FSA.
Main difference is the individual pays the vast majority of the bills directly before the deductible is met (again, from money they are GIVEN each year). They have an incentive to be efficient -- anything left over at the end of the year rolls forward.
Costs are further saved as insurance doesn't kick in to pay anything until the HSA is exhausted. Anyone that has years of healthy living builds up a compounding balance that can get sizable. This covers costs instead of insurance.
The counter-intuitive result is this costs LESS overall than traditional insurance. Main reason is insurance carriers are not in the loop for the vast majority of transactions... Your doctor treats you, you pay on the way out. All the people, infrastructure, electricity, paperwork, etc. involved in processing a traditional claim for a few stitches, for example, is never spent on. Also, given that time is money (the old TVM), the doctors "makes more" because he's paid immediately.
Frankly, I'm dumbfounded why people of a more liberal poitical bent oppose this. I lived under just such a plan years ago when I was working at Intuit (called Definity Health), and it was the best health care plan I ever had. And the cheapest out of my pocket.