Yes this is horrible but... wont this inevitably self correct?
The further they go down this road, the more their acceptance criteria will converge on insuring people that never need a payout. Once people clock onto that fact, the insurance becomes worthless - At which point other insurance companies will be able to come in and compete on a non-discriminatory basis and operate on the principle of a tax that spreads cost rather than a gamble that attempts to never actually deliver value to the customer.
... or you could just skip straight to an actual tax based health system and cut out the profiteering middle man. Yes I like the NHS.