Yes, but classically insurance wouldn't allow a guaranteed bad bet in. Health care is way worse then the classic 80/20 (20% of the people generate 80% of the costs). Pruning even just a fraction of these ultra high cost humans massively reduces the cost for everyone else which is what insurance companies used to do before the government stepped in.

(I mean a lot of this discussion is fucked because healthcare is literally your life but the point still stands)