Why medical care is a potentially inefficient market?

If health care is a problem why isn't anyone asking about how the govt has kept the free market from working?

• I heard yesterday on TV, a guy who was saying that in his state he had a list of one health care insurance company from which to choose. Would not his situation change if that list grew to twenty-five or more? I am thinking that these billion dollar companies wouldn't miss the lesson learned when a second gas station comes to town. They would actually have to compete. Better service at a better price will come automatically. The fact that this was never even asked makes me seriously question their role in questions that don't amount to a hill of beans, let's not even talk about Obamacare.

• Answer:

  I don't know why this guy only had one company in his state. But I do know that some car and home insurance companies choose not to write policies in some states. I know that for a fact, because I once tried to change car insurance companies and State Farm told me that they weren't writing anymore policies in my state. And it didn't have anything to do with the government. Maybe this guy lives in some state like North Dakota, where there are more cows than people, and insurance companies don't see enough profit in writing policies in a state with such a small population. I'm not sure if there are any federal laws that prevent insurance companies from offering insurance across state lines, but I know there are some state laws that prevent it. My state has an insurance commissioner. I believe all states do. The 10th amendment gives each state autonomy. States give up their 10th amendment rights when they accept federal funds, because the legislation that offers those funds require any state, that wants the funds, to submit to federal regulations. That is the case with Medicare, Medicaid, interstate highway funds, education, etc.. I'm not sure how the federal government could mandate that each state allow private insurance companies to sell insurance in their state. Even if there are private insurance companies that would want to.