You raise a very important point about why healthcare costs have outpaced inflation by huge margins. When I called the health insurance company to complain about being billed for fake services rendered in a hospital stay, their response was do not worry, they will pay all of that bill.
Which tells me, the insurance writers want to keep prices of hospitalization sky high, so that no one will dare be without health insurance. Higher bills justify higher premiums.
This is a common practice. You were correct in your analysis.
Leni