Personally, I would have split the difference... I would have created an NPO insurance corporation that was the default for all government paid access programs (employees, retired va, medicare/aid, state programs backed by federal funding)... this likely would have cost less than was already being paid out, in effect consolidating the management of several government programs as well as opening that corporation up to the states, businesses and individuals.
Following would have been mandated coverage by employers, and from there would probably have been room to cover most of the rest or provide tax incentives to do so.
As it is, when people are paying the entire premium cost directly, they're far more likely to use that resource more, effectively raising costs... the lockin is another negative issue.
Creating a publicly sponsored baseline would establish more competition and as an NPO incentive to drive down pricing. The larger issue is IP surrounding medications and medical equipment. Much of which could be improved by front-loading patent application fees, reducing the approval rates for extension patents, and statutory licensing fees for medications more than 5 years old.
In the end government should encourage competition, with innovation as a side effect instead of trying to encourage innovation by expanding upon misguided protectionist extremism.
But that's my thought on a pragmatic solution that could have worked better with a libertarian mindset.