I think it sounds horrible because the companies’ have the power of collective purchasing. If you belong to the company and have the opportunity to participate you gain benefits based on the size of the companies collective purchase.
Taking this out of the equation is a disincentive to work long term at one place. It’s also going to make it more expensive to shop for insurance becuase you have become a company of 1-10 people and have to face the lack of incentive on the health insurance company to keep your business.
You could still have ‘collective purchasing’ through trade organizations, unions, churches, AARP .... etc.
And you’d have the biggest collective purchasing there is ... the free market. We don’t have employers to negotiate prices for our purchases at the supermarket or Wal-Mart.
Prices stay low through competition.