[seanflyon]

I can't find where you said:

'We can't say "10k wouldn't cover costs for the 5% of people that will incur huge medical bills" because those huge medical bills only happen today, in a time where the government has the health system set up in such a way as to make all their proceedings exceedingly expensive.'

But now that I know what you are talking about it seems reasonable that removing government subsidies might reduce the total cost of health care. I am however, not as optimistic as you are. We have a free, but regulated market and in that market things are extremely expensive even when government money is not involved. It seems unrealistic that prices would drop by a factor of 2 simply by removing government payments and even a factor of 2 would not fix the problem that we are talking about.