If you want something to remain free from coercion or interference, decentralisation is the way to go.
Edit: Oops! I totally misread your comment ("is" vs "isn't"). Turns out I'm agreeing :)
The question isn't why _government_ leads to inflated cost, the question is why _American government_ leads to inflated cost.
The US government spends about the same on healthcare as others do, the difference is in the amount of private healthcare spending.
What statistics are you cherry picking to make your argument?
Second to that is the government interference in farming (specifically, corn subsidies, which have led to an increase of corn products our food, resulting in higher inflammation levels in humans and the animals we eat, obesity, heart disease, diabetes, etc.).
IOW, more government == more worse
Edit: because its so silly: A better parallel would be a world where everyone needed Doritos. In this world if you found yourself in a situation where you needed Doritos and didn't have it, you could check into a 7/11 and get a bag at the outrageous price of $5.00 for one of those little lunch ones. Thanks to Reagan, your Doritos needs cannot be turned down by 7/11 even if you can't pay. Everyone else has to pay for your overpriced Doritos.
Does it make sense to buy cheap Doritos insurance now instead of the high cost of Emergency Doritos?
If everyone mandated that you had to buy dorritos, it's in dorritos interests to put the price up. But if the government produced the dorritos, and the government isn't a for profit business, it's in their interests to keep the prices as low as possible, at cost.
There was this great thread I saw on /r/libertarian, where someone posted some images about the NHS. It was supposed to make 'socialised medicine' look terrible by showing an obese guy costing the NHS £200 a day for a bed while refusing to reduce their diet - "hey look with socialised medicine you are paying for this guy! How bad is that!!!"
However it backfired when all everyone was talking about was how it only cost £200 a day for a bed.