John Goodman of the National Center for Policy Analysis has an excellent column abut health care innovation. He summarizes:

Wherever there is third-party payment [insurance, a health plan, Medicare, Medicaid], the goal of innovation is to produce more products that qualify for reimbursement, even if the effects on patient outcomes are only marginal. Wherever there is no third-party reimbursement, innovators are focused on ways to lower cost and raise quality.

Goodman provides many examples of innovation that benefits patients. Just imagine how much more there would be if patients paid more than 12% of all health care expenses. Read the whole article: Where Are the Innovators in Health Care Delivery?