What does this have to do with socialism? How does drug companies charging for an arm and a leg or insurance companies paying for it and raising premiums relate to socialism?
It's one of the reasons for this:
https://en.wikipedia.org/wiki/List_of_countries_by_total_hea...
Others: having one predominant type of insurance nationwide cuts down on administrative costs (figuring out different plans costs consumers and hospitals money, these costs aren't minimized by competition), the cost of 1/sqrt(n) risk, and "bandwagon" risk (if a market plan is particularly advantageous for any given group of people, those people all sign up and "sink the ship," whereas national boundaries largely prevent such movement).
The idea that "insurance" is somehow applicable to a scenario where essentially every participant will need to file multiple expensive claims is extremely silly.