In theory, the cost benefits are in reduced administration costs. Of course that assumes that the government is capable of taking on such a task efficiently despite all evidence to the contrary. We're talking about a federal government that couldn't even roll out an informational website properly. No way should they be entrusted with such a major undertaking.

There is another way, summarized as follows:

1. Decouple employment and insurance. This is a must to put everyone on an even playing field. Once you do this, you can have true competition in insurance business and insurers can compete based on quality of service as opposed to their ability to make money flow through the system. Imagine that, your ensurer being your advocate rather than your adversary.

2. No-nonsense pricing from providers. No negotiation. Everything has a price and everyone pays the same price. You work with your insurer to make sure that you are getting the best value possible for your treatment.

3. Direct payments from the government to insurers to compensate for preexisting conditions. This allows insurers to charge based on age and lifestyle choices and not worry about people who have been unlucky for one reason or another.

The wingnuts won't agree to such a plan because the idea of the government doing anything at all horrifies them but those guys can go fuck themselves. Most of the country wants the government to be useful.