I can sympathize with your plight, but if you were basically in a position where you were perfectly willing to buy an insurance policy but couldn’t find an insurer who wanted to do business with you, I’m not sure exactly what kind of “problem” this is from a government standpoint.
Actually, the Public Health Service was started to care for Merchant Marines while visiting ports, but was expanded to cover the military and anyone else, who did not have insurance. We should re-establish the Public Health system. It should be staffed by doctors who would have their student loans forgiven in exchange for service. One year of loans for one year of service, plus pay.
Government regulations have permitted the insurance industry to get away with whatever it wants - and at the same time, have also stopped it from offering major medical, high-deductible, catastrophic, etc. individual policies. Federal regs also prevent shopping for insurance among states in which you do not live.
Insurance is a heavily regulated industry, and the insurance companies are basically both controlled by and in bed with the Federal government.
One of the reasons that insurance companies stopped offering group insurance to small professional organizations of self-employed persons, such as actors, translators, or similar professions, is that the government compelled them to cover the enormously high costs of AIDS treatment. Apparently it didn’t stop them from bailing on these organizations, however, which is why group policies that had once been available to professional organizations then disappeared.
I hope you weren’t naïve enough to think the insurance industry has ever not been under the control of the Federal government.