There's an old essay "Meditations on Moloch" which is an exploration of themes around why humans create systems with destructive outcomes even when no individual wants them:
https://slatestarcodex.com/2014/07/30/meditations-on-moloch/
Health insurers ... don't seem to do that.
Earlier comment: https://news.ycombinator.com/item?id=42435020
It's not "nobody wants this", but "sufficiently many people are sufficiently apathetic to continue this state of affairs".