There's also the fact that government is a huge player in the health care space, spending more on Medicare & Medicaid in 2010 than on the Department of Defense

There's also the fact that government is a huge player in the health care space, spending more on Medicare & Medicaid in 2010 than on the Department of Defense (simply making the comparison, as everyone understands that we spend a huge amount of money on war). As the State and its guilds scheme to reduce supply, which dantheman noted, the State also increases demand. This, of course, also raises costs.