If clinics and hospitals do not bill 1k dollars each visit, 100k+ for a simple surgery, and pharmacy does not sell medicine 10x the price, US gov't do not need that much allocation for healthcare.

They only bill that much because they need the average amount of money collected for a procedure to pencil.

They get that cash price amount from a tiny amount of people, 70% of that price from private insurers, 30-60% from Medicare, less from Medicaid. Even then, they have to basically litigate the bills through private insurance appeals.

If they had one payer which had a single reimbursement rate, they wouldn't have to do these shenanigans.