[grafmax]

Subsidies, depending on the market, often produce some degree of the effect you’re talking about, but it’s not black and white. The term is pass-through and full pass-through is rare with partial pass-through being typical. Often with subsidies (like for EVs) prices rise (showing pass-through) but it rarely cancels out, for example this study showing every $1000 of subsidy in California lowering the post-subsidy cost by around $800 - https://www.sciencedirect.com/science/article/abs/pii/S00472... - so only around $200 pass-through.

But this is a more elastic market than healthcare. To your point about negotiating power - it’s elasticity that gives negotiating power to consumers vs not.