> No, common sense says people and companies will chose providers with best coverage at lowest price.

This is basically the argument Comcast uses to justify their de facto monopoly. In Comcast's case, their "competition" doesn't even exist on the same scale (which is hardly competition).

If the market were really a "free market" there would be viable options between insurance companies for the insured. Sure you can pick your doctor, and to some extent your plan, but does your company offer you multiple choices for where your health benefits come from?