So you would rather the child suffocate to death in the hospital to save a few bucks? That is the problem with other people making decisions affecting your children, to them it is just money.
Insurance companies make most of their money from their investments, not from premiums. The majority of their portfolio is held in bonds of other companies, due to being heavily regulated in what they are allowed to invest in as well as government mandated reserve requirements. Has anybody thought about what will happen to our economy when all of the insurance companies go out of business?