There is no such thing as a free lunch. Employers and employees still pay when the money is run thru a government payor instead of a non-government heath plan. There is no magic money that appears by changing who cuts the checks to providers.
Hypothetically, competing insurance companies would push prices down. In practice, the market isn't a fair market (even before you get into issues like "People need medicine to live, so a market is a bad tool to parcel out medicine because price the patient is willing to pay is unbounded"), so insurance companies tend to add cost through paperwork, managerial overhead, accounting overhead, and cases becoming more expensive to treat as delays in preventative and early-intervention care cause issues to become chronic and urgent-care issues.
When the payer is the government, the government can say "The price of insulin is 2% above cost of materials" ... and it is. And when the money is flowing from taxes to government to healthcare, instead of employees to employers to insurance to healthcare, a company isn't asking itself "Can we afford to take on more employees right now if it's going to cause our healthcare insurance costs and employment taxes to go up," because the decision of how many people to employ is decoupled from the question of how much in taxes the company will pay.
That doesn’t change the fact that the costs of healthcare will still be “foisted disproportionately on employers and their employees” because those are the revenue generating population.
Government is already the largest payor in healthcare through Medicare and Medicaid [0] (funded by taxes “disproportionately on employers and their employees”). You’d think that they would already have the market power to do whatever they’d like with prices.
0. https://www.cms.gov/research-statistics-data-and-systems/sta...
The private business share of health spending accounted for 17 percent of total health care spending,
For additional clarity, I probably need to find the data source for what CMS describes on that link.
Social security, healthcare, various insurances... In other countries, everyone pays for those and the government provides them. Here, the cost is foisted disproportionately on employers and their employees (with those between jobs excluded from those services).