His approach makes the most sense, but the chance of Giuliani (or any Republican) getting elected in 2008 is slim:
People would shop around for plans that suit them best – young, healthy people may opt for the equivalent of liability insurance, while the ill or risk-averse might choose a fuller coverage plan. Those who take good care of themselves would, like good drivers, benefit from financial savings. And insurance companies would compete for consumers, improving quality of care while offering lower prices.
