Ann Coulter has a wonderful article about a good way to fix health care, and it is of course deregulation of insurance.

According to Coulter, if Congress were to amend the McCarran-Ferguson Act, it would allow interstate competition in health insurance. And insurance companies would be exposed to the marketplace. It would be very bracing to have some real choice in insurance, as one does even in submarine sandwiches.

Also if the federal government were forbidden to make regulations which applied only to insurance companies, that would mean that politicians wouldn't be able to force the populace to pay for their particular hobby horses.

Government determines what insurance companies must cover. Port-wine stains, while sad for people to have, are not the sort of thing which insurance is meant to cover. Or meant to be mandated to cover. If you bought a, I started to say Cadillac, then started to say Lexus, Ferrari insurance policy, it would cover port-wine stains and no doubt counseling for your poodle should it not take well to a move. If you are more sensible with your money, then you'd be able to choose catastrophic illness or anything in between.

Ann as usual says it best:

Instead of Harry Reid deciding whether your insurance plan covers Viagra, this decision would be made by you, the consumer. (I apologize for using the terms "Harry Reid" and "Viagra" in the same sentence. I promise that won't happen again.)