Employers’ benefits plans: We’ll redirect the money that companies used to pay for their employees health insurance, and put it toward a payroll tax that goes to our health care fund. Employers that never paid for health insurance will start paying this tax. (A professor at University of Massachusetts named Gerald Friedman recently did math on this here. He estimates the payroll tax at 6% for high incomes and 3% for low incomes — which should save most companies money overall versus insurance.)
You talk about removing layers and then leave one of the two main layers in place. Why? You mention making healthcare more like the military yet employers don’t pay any “military tax”.
A better (IMO) solution is to remove employers from the health care equation completely. If your system were to be implemented, then that law should direct employers to do a one time re-direct of the money they spend on health insurance and pay it directly to employees instead. (In other words, everyone salary goes up by the amount their employer contributes to their health care insurance).
There would be no net loss to employers for the amount paid (it would just change from them paying to insurers to paying it to employees) and they’d realize some cost savings because they’d no longer have to deal with the overhead of benefit administration.
From that point out, individuals would be taxed directly to cover their costs just as they are when they pay their income taxes to cover the cost of that military you talk about.
I have never understood the fascination people have with forcing employers to be in the middle of their own health care.