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To reduce cost, get the doctor and the patient closer together and get rid of the multiple layer of government and insurance bureaucrats in the middle.
I should be able to walk into a doctors office and understand my real costs for services less all of the middleman costs. I should also be able negotiate for a service and the insurance company reimburse me at the reduces cost.
I.E I needed a MRI that cost the insurance company $3,200, I found an imagining center agree to do it for $800 cash. The insurance denied reimbursing me for the $800 and paid full freight after all of the discounts and write offs.
The free market works in many cases, not so well in emergency and major medical.