What led to the HMO act of 1973

I remember when I had Blue Cross and Blue Shield. It was priced right and did a good job. Then all of a sudden the HMO's took over and we all know the rest of the story. Anyway this is part of a transcript of President Nixon coming up with the HMO Act of 1973. BTW we are the only industrialized nation that relies on for profit medical insurance companies for healthcare.

President Nixon: “Say that I … I … I’d tell him I have doubts about it, but I think that it’s, uh, now let me ask you, now you give me your judgment. You know I’m not too keen on any of these damn medical programs.”

Ehrlichman: “This, uh, let me, let me tell you how I am …”

President Nixon: [Unclear.]

Ehrlichman: “This … this is a …”

President Nixon: “I don’t [unclear] …”

Ehrlichman: “… private enterprise one.”

President Nixon: “Well, that appeals to me.”

Ehrlichman: “Edgar Kaiser is running his Permanente deal for profit. And the reason that he can … the reason he can do it … I had Edgar Kaiser come in … talk to me about this and I went into it in some depth. All the incentives are toward less medical care, because …”

President Nixon: [Unclear.]

Ehrlichman: “… the less care they give them, the more money they make.”

President Nixon: “Fine.” [Unclear.]

Ehrlichman: [Unclear] “… and the incentives run the right way.”

President Nixon: “Not bad.”

And one of the factors that sunk Harry Truman's proposal for National Health Care: Southern Democrats thought it would lead to desegregating hospitals.

Having lived in the south since 1958 I can still remember segregation very well. I remember people gasping when I used the "Negro Water Fountain" for a drink. Or when our family pulled up at the beach and my father refused to move over to the white section of the beach. I remember him and my mom laughing at all of the idiots because after all we are all swimming in the same water.

I could go on and on about the stupidity of segregation but let me just say I just can't wrap my head around the whole concept. Maybe it just has to do with pure ignorance on the part of racist.