Right now, health "insurance" is transparently a subsidy scheme where the healthy subsidize the unhealthy. I wonder, if "insurance" companies were allowed to operate as actual actuarial net-neutral-EV honest-to-god insurance companies again, which political coalition would get net savings? I could see it going either way. Conceivably, the efficiency gains from having actual insurance again would result in net-positive EV for both sides.
This is because HIPAA isn't designed to protect your privacy or your data but it's designed to protect the providers and insurance carriers. It's covering their legal asses and maximizing difficulty for everyone else to access information about what they've done to you. It's about protecting their investment.
If HIPAA were designed to protect your privacy, then HIPAA would apply to your data or you personally, rather than the narrow scope of regulated entities.