> I think the point being made is that when the government bears the cost of the externality it is more incentivized to address root causes, as it is a direct d

> I think the point being made is that when the government bears the cost of the externality it is more incentivized to address root causes, as it is a direct driver of savings. Thank you, this is indeed the point that was intended. It's not a direct case of the food manufacturer saying "Hey we have socialized healthcare, let's make healthier chips", it's the government thinking "Damn, we have a lot of obese people, let's have incentives or rules that make manufacturers produce healthier foods".