The basic problem with our healthcare system is financing. The government should not do everything nor should it be involved in the micromanaging of healthcare.
What I am proposing is a straight forward voucher system. The individual would be given a voucher, which would be based upon 2/3 the costs of a basic healthcare package. This would leave 1/3 of the costs to the individual and or business, as well as any additions giving the individual and or business choices to make. The vouchers would be given to everyone no matter how rich or poor, so as to create a sense of fairness. Additionally, I propose that the system be paid for through sales taxes. This may require the federal government provide some kind of initial incentive to states, which give this system a try, as it may be quite complicated and unpopular for the federal government to begin a sales tax. The incentive would run it's couse after a couple of years. Utilizing a sales tax would only make sense for such a voucher program, since income taxes tend to be paid in lump sums for some people, which would wipe out the vouchers benefit.