Exactly! The solution to the problems created by big government is to make government even bigger and more influential. Markets, where hundreds of millions of people make billions of decisions based on what’s in their best interest, don’t work. Only bureaucrats in a centralized government can make healthcare, or anything else for that matter, work.
Healthcare is already heavily regulated and controlled directly or indirectly through Medicare/Medicaid.
Instead of the hodgepodge of corrupt state-by-state 'deals' and patchwork quilt of existing regulations, why not replace it with one open, national set of negotiations where everyone can have their say? And one enormous, national insurance pool (not one company or single payer).
The chance of the Cato Institute's preferred policies being enacted regarding healthcare are about as close to absolute zero as politically imaginable.
I lived under the German healthcare system and it works much better than here, while I find our system a nightmare.