Art Laffer has it exactly right.

"Rather than expanding the role of government in the health-care
market, Congress should implement a patient-centered approach to
health-care reform. A patient-centered approach focuses on the
patient-doctor relationship and empowers the patient and the doctor to
make effective and economical choices.

A patient-centered health-care reform begins with individual ownership
of insurance policies and leverages Health Savings Accounts, a
low-premium, high-deductible alternative to traditional insurance that
includes a tax-advantaged savings account. It allows people to
purchase insurance policies across state lines and reduces the number
of mandated benefits insurers are required to cover. It reallocates
the majority of Medicaid spending into a simple voucher for low-income
individuals to purchase their own insurance. And it reduces the cost
of medical procedures by reforming tort liability laws."

http://online.wsj.com/article/SB1000...508092006.html