The spiral in healthcare was also caused by the government taking over the industry in the late 1960s. No coincidence both industries began to skyrocket in cost at exactly the same time, shortly after Nixon ended the gold standard, and the Fed acquired free reign to generate immense inflation and aggressively tamper with interest rates (spurring the cheap consumer debt boom of the past 40 years).
Everyone recognizes that healthcare and education became very expensive recently. Nobody seems to ask what changed in the last few decades to cause that. They act like Capitalism didn't exist in 1960.