What I mean is that the cost from a particular case of fraud is socialized across the population, at the point of taxation (or higher premiums for the mandatory insurance), instead falling on the patient at the point of use.

Which is exactly howbinsurance works, spreading the risk over large enough a population to make insurance affordable for everyone. One of the things Bismarck put on place, that socialist.

Spreading the cost of each instance across everyone doesn’t make it more affordable, since the reduction in magnitude of harm from each instance is offset by a directly proportional increase in the frequency of instances each individual pays for.

Luckily, you are not working in insurance calculating risks and corresponding premiums and rates.

I'm not following..