Indian, I think the main problem is inability to shop around. It's basically impossible to start a insurance company. If you do, your profits are capped as a percentage by law. Do you know what makes more profit than 5% on $100? 5% on $200.

Now you have a system where it's basically impossible to start a new insurance company and compete. For the existing insurance companies, the best way to make more money is to pay more for treatments and raise premiums.

It is clearly a not a competitive market.