Say you was given a triple bypass and paid a third back and defaulted.. They could open you up and tie two arteries shut.. Even! (Joke).
You would have a judgment against you for life with stiff penalties maybe even prison if you avoided paying when and if you could (all in the contract). Bottom line you are responsible for your debt period. No free outs. I imagine under those conditions we would look at insurance in a whole new light. Maybe driving a brand new car, having that extra bedroom, and the other luxuries are not as important. Hopefully with the government out of insurance some common sense would come back into the industry and prices would become much more affordable.
Back in the day Churches provided hospitals and people would have drives to help people out. There used to be more doctors like Ron Paul. I imagine if we got the government off of today's doctors backs we might have many more like him. The cost was not nearly so high in comparison to wages (when the government was not involved.)
By common sense Insurance I mean insurance companies should issue drivers license. Look how poorly the states do this. People with whole strings of DUI's are still driving. Pay 20 bucks get your photo taken and take a few simple test and you are driving! An insurance company may be just a bit more careful who they hand the keys to since they have so much at stake. Same with building permits and codes. What insurance company would insure a faulty building? Yet the government will back a home built on the ocean that will flood every 10 years! It works the same for medical I imagine they would cover much more preventative care than cure. Meaning they may cover 100% of sun screen yet only 50% skin cancer... A true free market would work it out much better than the mess we have today.
With freedom comes responsibility.