#2 - Promote competition, enable health care insurance companies to sell policies across state lines, just like car insurance.
#3 - STOP! Do nothing more, and get the hell out of the way of the American people and American Business'. They'll find the solution which will be MARKET BASED, driving down costs through competition.
It is a FACT that when businesses compete for customers, American's win.
What you said.
I like your starting steps, but a couple more measures would put more power in the hands of individuals.
Individually tax deductible insurance premiums.
Pre-tax contributions to personal and family HSAs.
Tort reform.