I more or less agree with your point of view. But, i would like to add that a complete "free" market health system is virtually impossible. If we had no regulation, what is likely to occur is that one insurance company can offer lower rates for those who are healthy, reducing its risk, an in doing so it will increase the risk for every other insurer causing them to either cut benefits for the sick, or go out of business.
What I would like to see is a "healthy" market for health care. I would like to be able to see what prices each doctor charges for each service, regardless of how i pay for it. I would like to be able to limit the doctors malpractice liability, by my choice, in exchange for a reduced cost of service. I think this would promote some healthy competition for doctors.
I would also like to have every insurer required to charge the same cost to everyone that they insure (this can be teared by deductible and doctor liability, or limits on treatment costs), and require them to except everyone without any prerequisites, and have no control over the doctors that i want. I think this would promote some healthy administrative cost reductions from the insurers.
Both of these together would encourage the consumers to be healthy, doctors to cut procedure costs and insurers to cut administrative costs, which is what we want.
The end goal should be a that everyone can afford some level of healthcare, maybe with limited liability for malpractice and a high deductible, but would still be covered for most life threating things that they couldn't pay themselves.
ultimately the country needs to realize that we cant afford to put everyone in the US on a dialysis machine when they get diabetes. someone is going to have to make the decision to let that person die, and i believe its up to that person to make that choice with the lifestyle that they live.