I think you're just a bit off base here. I have a policy like that with "one of the blues" - and it works great for them and I. In fact, the blues invented such plans. In my state, the blues are advertising such a plan now heavy. It is GOVERNMENT and UNIONS who perverted it to cover every little thing, not the private "blues."
I agree, out of business is a bit harsh. But they also push for a model where they are heavily involved in plans requiring a lot of intervention, and therefore fees.