[xyzzy_plugh]

This doesn't really work. An unregulated market has every opportunity to undercut a regulated market in almost every dimension. Do you expect that a highly regulated market would become sustainable let alone affordable? You may as well just demand that regulations are removed.

The only way this works is if the government subsidizes the regulated market such that it is accessible (and sustainable) to an appropriate market. It also generally puts some populations at severe disadvantages, and usually those populations are disadvantaged to begin with.

This may seem good to you but, unless your fellow man is equally wealthy, it is problem detrimental to your fellow man.

[newsclues]

Has the concept ever been really tested?

If you play the idea out (I’ve thought about this for years, perhaps you have fully considered it).

I think this works for people of all economic backgrounds.

There would be multiple competing standards for lower cost businesses, will the low standards business exist if people get sick, or will a slightly higher priced but much safer low cost standard excel in the market?

I think many of the issues you bring up already exist in the current market.