Is a business really private if it can't set its own prices? A philosophical look into an aspect of Health Care Reform.

From npr.org http://www.npr.org/templates/story/story.php?storyId=124471919

Insurance Mandates
One of the most popular things the bill would do is ban insurance companies from excluding people or raising their rates, because they have what's known as a pre-existing medical condition.

Here are some question I have:

1. Who determines whether or not a decision made not to insure someone was based on pre-existing conditions?

2. Is a private company really private if the government sets the prices at which it sells its goods/services?