Uh, we don't do use pure capitalism in this country, I think that is evident given the current economic climate. The current Health Insurance system is broken. The way the system works is, you either have the money to purchase health insurance or not. In this country, if you cannot afford health insurance, then its too bad. That is the problem. If I have would opted to purchase health insurance when I turned 18, I would of had to sacrifice my own livelihood (housing and bills) just to maintain it.
It is not as simple as, try one insurance company and if you don't like it, switch. That option is not always available, more common in rural areas. More common is that one insurance company has a monopoly on an area and you don't have a choice. Giving companies the opportunity to sell insurance across state lines and increase competition would help reduce costs. Unfortunately, even with more competition, it doesn't guarantee that everyone will be able to afford health insurance. What about those who still couldn't afford it? Does we just tell them "good luck"?