[ianai]

The market would work better if everyone was paying the same prices without "denial-based" inflation.

I think the solution would be to give citizens disease/disorder "endowments." i.e. a yearly health stipend account - it's money they can spend at doctors, but they can't spend on unrelated goods/services (i.e. food). On top of that, additional "stipends" for major life ailments. The trick would be in finding budgets for those stipends. Once individuals have money, though, they have the ability to do the relative value assessment for various treatments.

[snaily]

You may want to read up on Singapore's Central Provident Fund system, as a real-life implementation of something similar: https://en.wikipedia.org/wiki/Central_Provident_Fund