I think subsidizing healthcare
just for the elderly is a terrible idea. A fixed maximum annual benefit of say 30k would enable massive economies of scale, drive down costs, cover most issues, and not waste 100's of thousands of dollars on people who are beyond any known treatment and are effectively brain dead. Supplemental insurance for catastrophic problems would be optional as the vast majority of heath issues could be affordable. And vary few things are actually better treated by trowing lot's of money at them.
Supplemental insurance even for the elderly would still be reasonably affordable by most people, but it remove the current model where hospitals maximize revenue by providing pointless and often cruel care for the dying.
PS: I say this as someone that recently dealt with significant health issues. The ratio of actual costs vs delivered healthcare in the US is stupid and unsustainable. But, so is trying to write an unlimited check for any reasonably large group. Cap costs and you will see organizations operate within those limits.
Edit: Yes, I realise this is one of those things you can't say, but that does not make it wrong. http://www.paulgraham.com/say.html