They are, but their health care systems are everywhere on the scale from textbook socialism to capitalism-with-lots-of-rules. The UK's NHS, for example, employs the doctors, paid out of general government revenue, and provides otherwise-free health care.
That's not the point. The GP's error was calling the policy in question "socialism". It is not. Even if socialism->bad were always true, that doesn't imply the reverse, i. e. bad->socialism.
Spying on citizen has historically been used by every non-democratic regime, from the right-wing fascists to left-wing communists and west-wing Nixons.