But in your made up world you are just renaming and reasigning responsibilties. Instead of taxes we have insurance. Instead of gov't we have agencies. If you follow the natural course you will be right back where you started. I can't imagine you can't see that. I think the desire to make drugs legal is clouding an otherwise rational mind.
I am not an arnachist, even though I beleive there is no moral justification for government. But, there is an obvious difference between an insurance agency and government which you neglect. An insurance agency cannot force anyone to by insurance, a government always forces you to pay taxes. The difference is essential and moral, one works by offering you a value you may choose or reject, the other is the offer of, "your money or your life".
Hank