My first job with a large consulting firm offered exactly your last option. You had benefit "flex dollars" on top of your salary and you could shop among the plans they offered or you could take the cash and go buy your own (or not). Of course due to group rates their plans were cheaper than what you could buy as an individual, but not by a lot, and if you were a single young male (i.e. didn't need maternity coverage) you might even do better.
I do think we'd be much better off if health insurance was not seen as an employment benefit but as aomething you are responsible for yourself, like car insurance, rent, utilities, groceries, clothes, and all the other necessities of life. (I'm not saying that the government should provide it or administer it though).
In theory I agree with you, but there would need to be a more even playing field. I used to buy my own insurance, and I would get screwed every time. There was always some little loophole they gave me as to why the visit I pre-approved with ended up not being coverable. Am I supposed to have the resources to try beat them in court myself? No, so I switched companies and told them why. This happened twice. Now I'm on my employers plan with a successful company. Everything gets covered no-questions-asked... The argument against social medicine is inevitable injustice and slowness of beaurocracy, but what difference is an insurance company that doesn't really care if they have my business or not? If they're small enough to care, can you trust them with big financial commitments?
I do think we'd be much better off if health insurance was not seen as an employment benefit but as aomething you are responsible for yourself, like car insurance, rent, utilities, groceries, clothes, and all the other necessities of life. (I'm not saying that the government should provide it or administer it though).