Health care would be made cheaper by providing an outofpocke

Health care would be made cheaper by providing an out-of-pocket price. By having the total price or even the entire price of the medical provider being paid by an insurer or by the government on behalf of the patient would make health care cheaper. Health care can also be made cheaper by having certain institutional settings that can substitute for others in the treatment of illnesses. Lowering the time cost would also contribute to making health care cheaper. Time cost can be lowered by reducing the amount of time that patients take to access medical provider and the time spent waiting to be treated.

If healthcare would be made cheaper by providing an out of pocket price and by having the total price paid by an insurer or the government on behalf of the patient. While I can see how this would make health care cheaper for the patient, how does it reduce the overall health care cost? Is the assumption that the insurer and/or government would negotiate and get the lowest price for the services?  

Solution

The point here is to understand what are the factors that contribute to the cost of of health care? Once the dependant and independant variables are identified the equation can be formulated and accordingly optimized. The second most important question to answer is the cost of the health care would become cheaper for whome? is it the health care industry? the government? or the patients? as far as the overall health care cost is concerned it does not get lower as most of the variables seemed to be fixed-equipments, doctors/surgeons, medicines, facilities etc. The only thing that is happening here is cost is being shifted from patients end to insurer/government just like the energy in physics.