>Breaking it down: if the US gov (or its subdivisions) believes the risk is "gouging" or "egregious" or "too expensive" and prohibits rate increases,

You worded the original query badly then.

I read it like follows:

What if the US gov:

* doesn't recognize the risk and

* allow insurers to raise rates

Hence my confusion: Why is it bad for the US government to let insurers raise rates?

EDIT: Copypasta fail. :V