1) People buy health insurance for themselves, or receive it through their employers. Whatever cost is not covered is paid by the individual, or through Medicare or Medicaid if eligible. (present system)

2) People pay for their health insurance. Insurance paid for by employers is now treated as income to the individual, but each individual also receives an equivalent tax deduction or credit to buy insurance. (This has the effect of getting employers out of the health insurance business somewhat, and making individuals more active in the process.) Allow for more interstate competition among insurance companies. Individuals pay for whatever is not covered, with some govt assistance if needed.

3) People pay taxes for an insurance system administered the government. The level of coverage (and who pays what "premium" and who gets what service) is determined by the government.

Which do you choose? Why? Are there any additions or changes you would make to my facts?

I'd have to say none of the above.