Let me have a try at it.
The medical industry is drunk from the milk coming from the government teet. Before government jumped head first into paying for people's medical treatment, healthcare providers could only charge what people could afford to pay. Any more and they'd go out of business due to a lack of customers. Once the rich uncle with bottomless pockets came into the picture, that was no longer the case and they began to exploit the situation by charging more and more for their services. They knew they could jack up their prices because the people paying the bill could afford it.