Pretend there is no US federal government at all for a moment.
Now assume two states are side by side and equal in all
respects. – same laws, same taxes, same everything. State A
decides it wants to socialize healthcare. In order to do this,
it will necessarily have to set prices and raise taxes to pay
for it. Doctors will be put under control of the state and they
will have their costs and prices dictated to them. Care will be
free for all and its costs will be borne by the tax payer.
Doctors will be paid a set wage like any other bureaucrat.
Healthcare would operate like any other government owned
industry. State B decides it wants to totally deregulate medical
care and eliminate all subsidies and state programs. No state
involvement in healthcare at all. Insurance companies would be
free to operate as they saw fit. No regulation over insurance at
all. No regulation over medical care at all. Taxes would
appropriately decrease and medical costs would be set by market
competition. Question, how would state A