> And if the state or federal government wants to set up a system of oversight over the charges, then good.
That is what happens now. See Medicare/Medicaid/Tricare/federal government employee plans/etc.
That is why health insurance companies are better referred to as “managed care organizations” (MCOs). Most importantly, they are selling a plausible deniability shield to government leaders.
The government is paying for healthcare, but since there is insufficient supply of healthcare, someone has to get shafted. Using the MCOs to do it lets government leaders point fingers.