Because most of your insurance is private based as most of the hospital sector. It is for profit, not for the people.
Why do you claim that because it is for "profit" it is not for "the people"? Where is the rationale in this?
Do you feel governments are better suited to deliver services than the private sector?
It is only distorted because there is no regulation to prevent HMO's running the system for massive profits.
That's right, and it's largely because these HMO's were given monoploies in certain areas and rigorous competition, thanks to the government, was not allowed.
As for thinking that free enterprise will make things cheaper.... I cant name many industries where that is actually true, since there is very few industries where there is free enterprise, especially in the US. Maybe the car industry, but then again that is back stopped by the US government. Maybe food sales, but then again here bulk is king and it has concentrated on few big sellers.. hardly good for free enterprise.
You claim that free enterprise does not necessarily make things cheaper and then go on to mention government involvement as to why things aren't less expensive. Lobbyists will always try to get their industry protected somehow because everyone, including governments, want to monopolize their power. It makes things a great deal easier for them as they needn't bother with any pesky competition. But of course it is bad for the consumer and monopolies by anyone must be resisted.