Are you serious? You think Uncle can do ANYTHING better and less expensively than the private sector?
One of the advantages of having Uncle Sam involved in anything is that he can slash costs by delivering a sub-standard, sh!tty product without having to worry about getting sued. Ask any doctor how much he gets paid by a private insurance company and how much he gets paid by Medicare for the same procedure.
This is exactly what is going on here. Give it another 15-20 years, and "government-paid insurance" will cost $25 per year and will cover nothing more than a couple of hospital visits from a dancing medicine man.