This is excellent policy. Consumers should be able to choose the coverage that they need and pay only for that. Pricing in healthcare is incredibly opaque which does not lead to competetion. This is a great step to help add at least some price transparency so that citizens can make informed decisions.
I have a better idea, since we're talking about paying only for what we use. We get rid of the scam that is "insurance." You know, only pay for what we use? We already have that.
Unless Unlike most of the people around today, I remember when health insurance was something only the very wealthy had it was only because they were going somewhere or doing something that could be hazardous. It was something that hospitals we're quite sure how to handle all the time but they knew that if you had insurance, everything was covered.
It's a step in the right direction, but obviously lots of effort still needs to be made to remove distortionary policies that reduce the efficiency of healthcare. You're right that the reliance on insurance for routine care should be reduced. A good analogy might be to having automobile insurance cover oil changes: there is no reason for covering routine care since this can by definition be planned for and saved for accordingly. Putting transparent prices on these services (which would no longer be tied to your employer) would be great for citizens to choose between physicians.
Some level of coverage for catastrophic illness/injury seems appropriate though.
Good.
The government should not be dictating what insurance plans people can buy.