Yes, I do believe that the government probably understands that health care is a huge problem for startups. What I don't believe (and this is the point of the Steve Blank blog post) is that the government can effectively prioritize what the biggest problems for startups are.
Now, lets talk about Startup America specifically. Going off the information available online ( e.g. http://www.whitehouse.gov/issues/startup-america ), this program is more focused on things like access to capital, mentorship and education, partnerships with big business, federally funded grants and research.
I think these are all really great things to work on, but health care, #1 on my list, is not even mentioned on their list at all. Again, I believe they know it's a huge issue, but they may be shying away from it now because "we did that already and it's done" or "we'll lose elections in 2012 if we keep talking about it".
The government placed access to affordable health care at the top of its priority list from day one of the administration. The notion that a $75 a month plan ten years ago might now be $1000 a month is specifically targeted as a primary issue. Again, you can say the legislation is awful and won't work at all (I've no idea myself and I'm in the "something is better than nothing" camp), but they certainly understand the problem.
Edit: And I APOLOGIZE for quoting a paraphrase, I am no longer able to edit the comment else I would remove the quotes and fully explain what appears to be what you are saying. I sincerely hope that I am correctly understanding your assertion, which again appears to say, "the government doesn't understand that health care is a huge problem for startups", and if I am not, then I withdraw my comment fully.