There's basically only 2 meanings for free (not in jail, price of 0), so if it's not the one, it's the other. Don't think his comment wasn't of value to me.
Then I fear you've oversimplified your model. I believe there is a lot of grey area between being placed behind physical bars and being forced to pay for services.
For example, let's say one comes down with a horrible disease, clearly they are not being directly charged in cash and no police have been involved. Yet I can't shake the feeling that they have been parted with some freedoms.
Anyway, food for thought. This thread is perilous.