This quote by Ron Paul seem so obvious to me.

We need a system in America where patients pay cash for basic services, and carry insurance only for serious illnesses and accidents. “Health maintenance” is the responsibility of each of us individually. We cannot continue to collectivize the costs of healthcare and expect things to get better.

This is the only way to keep costs down. Yes, costs would come down in a free-market system. Consumers would benefit enormously, unlike with the current legislation (which is a gravy train for the insurance industry).

I suggest you read the rest of the article, End the Mandate.