Spain is my target too.
We are city people, so the objective is a city flat (piso).
Yes Spanish PRIVATE medical insurance is CHEAP!
I have quotes similar to yours.
We have US medical savings and etc., but at those prices we can just forgo all that.
Valencia is a nice choice if you want a modern, cosmopolitan city without all the drama of Barcelona and Madrid. Santiago de Compostela is nice if you want history and religious culture. Bilbao is nice if you want it cooler. Seville is nice if you like the heat. Granada is nice if you want to be near the mountains. There are just so many good choices. You can always send me a PM if you need some inside information without the bias of someone trying to sell you something.