I don't disagree in general, our system would have worked much better as is if that had remained the case. But we're well past that point. People expect insurance to pay for everything. And because of that, pharmeceuticals have skyrocketed in price to where it isn't really optional anymore. Even normal costs like doctors visits have risen greatly due to that fact, and the fact that insurances demand an X% discount (so they just inflate their costs to match). We no longer have a choice- people can't afford to pay cash and an attempt to change insurances back and hope the prices fall would end in turmoil. It'd shatter the economy, and people would die for not affording meds in the meantime.
The other place I disagree with is for the very poor- a doctors visit even at inflation adjusted prices of 30 years ago would be a significant cost to them and any just society would need to at least partially subsidize it.