Your point is well taken and largely correct, in part; however, fedzilla indirectly got its fingers in the pie before that.
During WWII the Roosevelt admin capped wages so industrialists trying to grow their companies to service wartime contracts couldn't attract skilled workers by outbidding the wages offered by competitors. Consequently they had to offer additional benefits, one of the primary of which was health insurance. After that time, employer provided benefits came to be viewed more and more as "right," which of course became a prevailing attitude which government was more than happy to exploit.
I am aware of that, and what it means is that health care costs would have been far less than 5% in 1960 had government not already stuck its finger in the pie.