Yes, the "health insurance" industry funded backlash during 2010 against Obamacare was most definitely "projection" in the classical sense. They most definitely did that for private plans - by recission (kicking expensive people off the plan) or simply the "pre-approval" BS where they keep expensive people but decline specific (and possibly needed) care.
That's the only way private health insurance can both cover (most) in a cost effective way AND be profitable for their hedge fund masters.