It is not in interests of government to negotiate it hard. If anything - they will lose budget. Same with private insurances - unless it hits their bottom line,

It is not in interests of government to negotiate it hard. If anything - they will lose budget. Same with private insurances - unless it hits their bottom line, they will not negotiate and simply accept slowly increasing medical care costs, and push costs to payers (just like government will push costs to taxpayers) Having less of insurance money (both federal and private) will make pool of cheap money less which in effect should drive price lower. So if anything, attempts of current government to decrease amount of cheap money means that it might only move costs lower. Granted, these changes are minor in dollars, so effect will be not very visible. Stop paying for family doctor visit via insurance - and you immediately see costs going down. (also please decrease cheap money available to student to get loans without any qualification to pay for it and you will see tuition fees going down)