Government intrusion into ANY field of business ALWAYS raises costs. I know of no single exception.
There are multiple reasons for this phenomenon. Here's one: when government says it will pay for medical (or any other expenses), it has to decide what price to pay. In medicine, the natural incentive for doctors is to raise their supposedly "USUAL AND CUSTOMARY" fees as high as they can get away with (though in reality, a person without insurance would never pay that exorbitant fee). The government then pays the average "U and C", inflated average for all practitioners in a given region (or, depending on the rule, a percentage of that U and C fee).
But in reality, that "U and C" fee is sheer fantasy. No one really pays it.