This is pretty much what we have now, except with an oligopoly instead of a monopoly. Not really seeing how going even more in the direction of a monopoly helps.
When people can make choices, thats when things change. People actually get sick, so paying for healthcare is more than just a cost, it can have a value as well.
At least with the current oligopoly system, there is a small amount of choice, and you can choose to purchase a drug on your own if what your insurer has on offer does not work or is more expensive. We should be going in the opposite direction - away from monopoly instead of towards it.
Instead of a single payer, we should have a single market.