The free market cannot solve our healthcare problems. The free market means that firms need to "maximize their profits"--the only way for health insurance companies to maximize profits is to minimize payouts. The way to minimize pay outs is to not give people the treatments they need, to not allow people who are sick to get insurance, and to not cover expensive procedures.
Sorry to break your little republican red heart, but the free market isn't always the best way to take care of people. Adam Smith, afterall, wasn't Jesus.