As pointed out the attempt to do what you profess has been around for years. There was a time the insurance industry tried to accomplish it with payments based on "reasonable and customary ", then HMO's and PPO's-it didn't drive prices down, it just allowed esculating prices. Insurance companies gave up trying to fight it and now just add their cost and profit onto our premiums. Not sure why people think this will work now.
http://www.managedcaremag.com/archives/2007/2/why-market-competition-will-not-mend-our-health-care-system