So, why don't all the folks - there are apparently millions out there - who really think insurance companies are evil bloodsucking bastards, start your own non-profit payer system. This would be a private, non-profit whose goal was to "pool" health care costs in a fair system. Anyone who wants "in" to this system should be allowed to do so through employers, etc.
Who wants to bet that such a company would go out of business before too long, or would have to make similar decisions about denying coverage as we see above.
All the talk about the "government" being more fair, and solving this problems is bullshit. Either the government will have to deny services to cut costs, raise "premiums", or be in the red and take money from other tax revenue sources.