We find that the net cost of regulation is 6.4 percent of gross economic activity in the health industry, meaning that health expenditures (and health insurance premiums) are at least that much higher than they would be absent regulation. Based on consensus estimates of the impact of higher prices on health insurance coverage, this increased cost implies a 2.2 percent reduction in the demand for coverage.  The reduction in demand translates into 4 million uninsured whose plight might be attributed to excess regulatory costs, or roughly 1 in 11 of the average daily uninsured. Furthermore, we find that the net burden of health services regulation likely exceeds the annual cost of covering all 44 million uninsured by a considerable margin. The high cost of regulation compared with the cost of covering the uninsured raise a legitimate policy question: do the benefits of regulation outweigh the benefits of coverage for all Americans?