This is something several private healthcare companies are doing. I don't know if the company did this, or the gubmint. Either way, you had every right to tell this lady to stick it where the sun don't shine.
That being said, I don't know I would'nt have done the same thing you did. Discretion is the better part of valour. Granted, you gotta make a stand sometime.
(I think I would have been more inquisitive, then told her to stick it)
I agree with the sentiment that I want to see a warrant before I let you access to my house unless I want you there.
P.S.
Congratulations on the child Mazel Tov!