With my plan you could theoretically raise the level of stop-loss on the fund until it was no longer needed. At least the free market could get a foothold and charities. Also the tax credit system for covering the poor would get started.
How's about the federales write a check to every person in the country over 40 the equivalent of, say, two years average medical/doctors/meds costs. Then tell everybody they're on their own. If nothing else it would be fun to watch. How many new vehicles and big screen teevees would go flying off the lots and out the doors???