Sorry, but in this country the government is us, we the people and I sure as hell trust we the people a lot more than an insurance company that is only concerned with a bottom line and not the welfare of we the people.
Government isn't "us". Not all of us, in any case. The best case scenario, in a representative democracy, compels government to act on the desires of the majority, but that will often be in conflict with the interests of the minority. This is why we have a constitutionally limited government, and not unlimited pure democracy.
But you raise a good point. Even as a staunch libertarian, I agree with you in trusting government to protect my rights more than the profit motive of insurance companies. Which is exactly why I don't want to be forced into doing business with them. Think about it.