On that we'll agree. Too much regulation is part of the reason prices are so high.
BTW ... you gave Mass and Cali as examples. These are lefty states, run by mostly lefty officials, and the companies based there house the same type of people. That said, while the Blues are all part of the BCBS Association, most are individual companies. Some are grouped (Regence in the Northwest states, Health Care Service Corp for IL, TX, OK and NM, and others) What happens in Cal or Mass does not represent all of the Blues plans.
Mass and Cali may be the worst examples but all of the Blues have lobbied to create protections for themselves. They are part of the problem. I've seen case after case where they've opposed state-level reforms that would open the markets to competition. The Blues and the other big insurance companies are far more interested in protecting their organizations than they are in fixing the real problems. The best way to fix that problem is to create a more competitive environment.