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Libertarians only care about 2 things: lowest taxes possible and legal weed, and they would gladly sacrifice the latter in favor of the former. Anything else is nothing more than lip service.
Universal healthcare means taxes, and that is the one thing Libertarians hate above all. Never mind that it would be cheaper than private insurance. They relish in the fact they can skip buying insurance, and if they get hurt, ERs are required to treat them anyway.
Libertarian care about maximizing social and economic liberties. Liberty being defined as freedom from authority. Taxes are forced on citizens so libertarians generally want to limit taxes to a minimum. I see no reason to believe that universal healthcare would be cheaper than insurance. The government is an inefficient monopoly where private insurance companies have to compete for the lowest rates.
Private health insurance still has a "profit margin" that boards are legally bound to. The public system removes that line item.
Profit margins are to keep a company out of debt and ensure it can grow as technology advances. Government would still need to pay employees and keep up with tech. But your right, government does need to avoid debt because it can just print money but that leads to inflation. There is no way to make cost just disappear.