Government is force/power/compulsion. It does not inherently seek the good of the populace. The more you hand over to the government, the less recourse you will have when faced with incompetence, corruption, and overall indifference to the needs of ordinary people.
If your government is like that it is badly broken. In the US it seems to have been taken over by lobbyists and rich people. In Europe our governments mostly do try to improve our lives, and healthcare is one area that they largely succeed at. It isn't perfect,but it's a hell of a lot better than what the US has.
What you describe is not an inherent property of government, it is what Americans have allowed theirs to become. In any case, I'm no expert but from what I hear if you look at it impartially Obamacare has been a net benefit for the majority of people, despite the problems which don't see to be any worse than similar size corporate operations.