Why is an insurance company seen as being morally superior to so-called government hand-outs? Because they make a profit? Because they are so good at getting government handouts themselves? Because they can make it extremely difficult to receive the benefits a person is supposed to be entitled to? Because it allows the privileged rich a chance to enjoy their privileges in terms of their lives literally being worth more than other lives?
The desire to further reinforce vicious inequalities can't be a net positive for anyone in the end. Even the insurance companies will suffer for no longer having anyone to bail them out.
I don't have as much of a problem with the idea of communities working together to solve problems in lieu of government involvement. But I don't think there are a lot of models with respect to healthcare in developed countries that prove to be adequate. Just pointing to insurance companies as the means of lessening the need for government, seems pretty weak, and ultimately inhumane. There is a reason that emergency rooms must treat all those seeking medical attention by law. It shows the obvious limit to requiring insurance and relying on everyone to buy insurance. There is a difference between people and widgets.