I think that the real question is, what public services should be provided by the state?
I guess you are arguing that there are none. I think that there are a whole heap of intrastructural things that are necessary in the modern economy: roading, water, power, telecommunications, libraries, education, healthcare, social welfare. These are things that should either be provided for or regulated by the government.
What is crazy about the american healthcare system is not how 'socialised' it is. It's the least socialised healthcare system in the first world. What's crazy is that it is so expensive (read: inefficient). The profit motive is dominant over the service motive, to the detriment of patients. The US comes second
when it comes to spending money on healthcare, but ranks 37th
in terms of health outcomes. That's appalling.