That would be a hard sell to employers
Trading medical insurance payment for more federal, state and worker compensation taxes along with higher liability insurance premiums.
In theory it is a great idea. Anytime the consumer has to pay out of pocket they become more frugal.
I can also imagine politicians claiming this won't work as they think the general public isn't responsible enough and will spend the money elsewhere instead on medical needs.
That being said I have no better idea.