>> Basic laws of market economics don’t really apply to healthcare.
this is not true. There are ways to make difficult industries more market friendly. Making price transparent would be one. Not covering basic care for those who can afford it would be another. Increasing competition between insurances would be third. International competition on buying drugs, 4th. I am sure there is a Cato report on market policies in healthcare somewhere there. Trump tried some. Bush II tried some with Medicare supplements, After all of that, you can consider how government could plug the market deficiencies.
A good example of competition introduced in a difficult industry was Navy building, I think, fighter engines during Reagan times. Navy ordered design from one prime contractor and then disclosed designs to the competitor [legal according to fine print, but contrary to prevailing practice of honoring designers with no-bid contracts] and invited both to bid for production, awarding contracts to both for several years, resulting in huge decrease in pricing.