preventing death from disease is not a terminal goal for him; it's sacrificeable

You're using a wrong framework which assumes that in every choice there must be only one terminal goal, if you sacrifice anything that sacrifice is not terminal.

A more useful framework would recognize that there is a network of terminal (and other) goals and that most decisions involve trade-offs. It's very common to give up a measure of satisfaction of some terminal goals in order to achieve satisfaction of other terminal goals.

In this specific case, trading off death from disease against government intrusion sounds like a normal balance to me -- your choice is a function of your values and how much death prevention you get/avoid in exchange for how much of government intrustion. In specific situations I can see myself leaning either this way or that way.

I find your worry over the trade-off between terminal goals worrying :-P