Privatized healthcare has the opposite incentive, whereby unhealthy choices may be ignored or even encouraged because they're a money-making opportunity.

It turns into this endless cycle of "we need to ban this and ban this and ban this" and never looking at the actual cause of the problem. Just the government creating more work for itself and creating more laws to control people's actions.

I think the stigma point is definitely true, but it's not doing anything to improve things. Obeise people are looked down at by society, but in the US 70% of the population is obese and the number just keeps growing. The natural incentive system is broken by government programs. Why should I bother eating healthy and limit my diet when I can just get health insurance when I get diabetes?