One thing I did not see mentioned in the article was a statement last week from Arnie stating his desire to have this coverage extended to those members of society which are here under the radar... i.e.: illegals.
I think you have to consider that the tyrannical men in black are ordering that the medical services be rendered to the ill, whether they are paid for or not. Arnold is trying to get some money from those being serviced. Of course what should be done is for the judges to be impeached and removed from office for their violation of oaths to the constitution.
Heathcare is not a normal commodity. There always is and always will be more demand than supply. Moreover, it is a public good because the public in general has an interest that its individuals maintain a certain level of good health so that they are productive tax-paying members of society.
Therefore balancing the cost-effective positives of a free-market with the balance required for the above requirements is not all that simplistic as you make it seem. This is why through the various federal programs (medicare / medicaid), Americans have virtual nationalized coverage, but because of simpplisitc thinking and corproate interests the US also has the world's most expensive system (US = 16% of GDP; Germany = 13% of GDP; Japan = 8% of GDP) that still doesn't cover 15% of the population.
The boast that America has the world's best health care is only true if you believe that a system that costs more than any other, covers a lower percentage of people and produces a life-expectancy that is the lowest among comparable countries constitutes "the best".