I see it the other way...
Insurance is the cartel. They demand that doctors give better rates to insured patients than to uninsured patients. This drives up the prices for everybody, but especially for the uninsured.
This is in the interests of the insurance companies, it makes their service more necessary.
Also, because many people do not have medical insurance, preventative medical care is often neglected, leading to a larger number of more expensive emergency room treatments.
These ER treatment costs are "eaten" by the hospitals, again, driving up costs for everybody.
Having a public option means less money wasted overall (since there will be preventative care for everybody, and preventative care is much cheaper than letting conditions go critical before acting). This doesn't even take lost working hours into account.
Waste due to lost working hours is a net societal loss.
Like free abortions, preventative care is an investment that pays itself back and even gives a net profit on the societal level.
(Remember, they really didn't build that - society creates a lot of wealth that is not the property of the people who happen to channel it, that is the basis for taxation).
