A person is living in a corrupted Government. He is being harassed and taken out money by corrupted officials frequently. In such a situation, Government have issued HEALTH insurance.
Can he buy 1 person insurance but use the medicines for 2nd person also who has not bought the insurance?

No it is not allowed.
See for example answers to question 1 and 2 here:

https://www.sistani.org/english/qa/01221/