[mindslight]

> Is there any economic theory which explains how such odd of an system can emerge/survive?

It has nothing to do with economics, but rather with law. My first reaction upon seeing figures like $300 for ibuprofen or $750 for iodine (both elsewhere in this thread) is imagining I'd tell the hospital to fuck right off (ie respond with written notice disputing the validity of such charges), but clearly there are other details that pressure people into actually paying the nonsensical bullshit.

Regardless of single payer, private insurance, subsidies, out of pocket, etc, I do think much of healthcare could be solved if providers had to charge/publish uniform prices and couldn't post-facto bill, you know, like every other business. Imagine going to the grocery store, paying at the register, and then two months later receiving a bill in the mail for the cashier's time!