On the healthcare front, it would actually more profitable for insurance companies to fund preventative health care and healthier lifestyles. Instead they focus on denying coverage as a way to generate profits.

Don't insurance make money on margin? That is what they are allowed to charge above their payout rate. Thus as long as payout rate goes up at right speed compared to their payin they will earn more the more they spend. It is not like premiums are set to go down ever.

Don't have to pay for the costs of denying preventative care if we just deny coverage for the expensive stuff too! taps forehead

They can only deny a certain percent of care that they’re supposed to pay out before they come under scrutiny and lawsuits are filed. Preventative care can dictate better outcomes for pretty much everyone covered.

For insurance, but health care is bigger than insurance.

Pharmaceutical, hospitals, equipment manufacturers.

Not everyone profits maximally from healthy people.

Correct. But incentives within the industry should balance everything out if each of these players tries to profit maximally the right way.

“Should”

Lobbying and regulatory capture have led to a less than free market, that people expect to function as a free market, but the government intervention has been too great.