It's neither of those two.
The actual problem is the huge number of people employed by the industry.
The US government is incapable of fixing anything because it would require firing huge numbers of people.
That's obviously a non-starter for any politician.
This situation can only be fixed by giving power to an entity that doesn't care about firing people, that only cares about the bottom line.
And by the time people realize what's happening it'll be too late to change it.
Basically private insurance companies that are not monopolies. There was a plan I remember from years ago about allowing people to buy health insurance from any state.
In my opinion that's the best option. It would also be necessary to get rid of employer based insurance because employees don't get to pick.
I have zero expectation of this ever happening.