As far as creating monopolies the government is helping to do that by prohibiting insurers from sell across state lines decreasing competition a raising costs.
Yes, the smaller insurance companies can't compete against the big boys now, so, clearly, giving them a bigger market to be washed away in would help.
As point of comparison, when I was a kid, there were dozens of five-and-dimes and hardware stores around town. Then Home Depot, Lowes, and Wal-Mart moved in and they're all gone. It's certainly not because Home Depot and Lowes are cheaper now. I'm sure I never had to pay
43¢ (or the equivalent in '80s cents) for a screw. And Wal-Mart keeps their prices down by exploiting everyone they come in contact with. Yay for the free market!