You're right that whenever there is a subsidy, people who consume the subsidized good have money left over to buy other things. This is true for green and red apples as it is for subsidized (or free) health care. There is still the question of whether the size of this "income effect" is greater than the size of the subsidy to evaluate overall impact on welfare. I should add, though, that this point is different from the one we're making, which is about the effect of user fee removal on the supply of health care. Systems of accountability are important in the delivery of health care, and if direct prices are not to be used, something should replace it.