Insurance is a bet. You look at the odds and price things accordingly so you can cover the occasional big payout with the premiums from people who don't "win" so to speak. Playing with the lives and health of people to try to skew the bottom line one way or the other is fundamentally a stupid human practice.
Government should provide some basic health services to protect the health of the nation as a whole, just like government tends to provide fire fighting services because letting one fool burn his own home down can burn down a lot more than just his home.
It's a complicated topic and a pet peeve of mine. This approach to trying to keep people healthy is deeply flawed.
Edit: Though I'm really not sure what your comment has to do with this article, to be honest.