Because for 40 years now the Republican party has demonized regulations as a concept. So now we are in a situation where people like you write:
Regulations as a concept are the category of thing which is causing the problem.
No sensible person thinks regulations as a concept is bad but, well, roughly 1/3 of the U.S. population is not sensible on this topic. No sensible person thinks all regulations are good. Regulation is not the thing to talk about since the issue isn't regulation but bad governance and oversight. The issue is politicians in the pockets of insurance companies. The issue is that we live in a country where profit is the holy of holies that must not be messed with.
The actual problem is that "regulations are bad" has become a decent heuristic, because such a high proportion of the existing and proposed regulations are a result of regulatory capture. Your objection seems to be that you want to call this "bad governance" instead of "bad regulations" but it's not clear how that's even supposed to be different.
The number of people who think that all regulations are bad is limited to a handful of actual anarchists with no real power and a presumably larger number of rules pedants who want to play different definitional games where they use "regulations" to refer to the things they don't like and call the things that they do like "laws" or "rights" or some other allegedly distinct thing where the distinguishing criteria is doing all the work.
Of course, getting people to spend all day arguing about terms is to the advantage of the people who like the status quo, because then they can get the people who claim regulation is generally good to pass their regulatory capture rules and get the people who claim regulation is generally bad to repeal or fail to enforce the e.g. antitrust rules intended to protect people from their predatory behavior. But then you're just playing into their game -- the Certificate of Need laws etc. are of the first category.
Regulations as a concept are the category of thing which is causing the problem.
No sensible person thinks regulations as a concept is bad but, well, roughly 1/3 of the U.S. population is not sensible on this topic. No sensible person thinks all regulations are good. Regulation is not the thing to talk about since the issue isn't regulation but bad governance and oversight. The issue is politicians in the pockets of insurance companies. The issue is that we live in a country where profit is the holy of holies that must not be messed with.