Communist countries are notorious for considering their people expendable, so there is no reason to believe the communist rulers will put workers' health above a good cruise missile and the chance to reduce over population.
You say we would have cured cancer in the old days - but we didn't. Still, you are correct that the profit motive can have an insidious effect. For example, the pharma industry will not go down certain research roads unless they can hope to turn a profit in X years. And I wouldn't completely put it past them to hide a cure that would render their market obsolete.
Having witnessed the atrocious conditions of American military cancer facilities, I can tell you that it needs a LOT of work. It may even be better to shut down the VAs and push the money saved into insurance plans with commericial doctors. That way, the soldiers could get top notch care and the government could demand better pricing due to the volume.