1) Allow health insurance companies to compete across state lines. The added competition will compel them to drive down costs.
2) Tort reform to cut down on b.s. lawsuits against doctors. Doctors will then have lesser need to practice -defensive medicine-, which is extraneous tests that doctors do that aren't really necessary medically, it's just to cover their a$$es.
3) A greater reliance on health savings accounts. Social Security is bankrupt. Medicare and Medicaid are bankrupt. The vast majority of states in the union run on deficit spending. The government has thus shown it is unable to handle administrating a public pool for social services. It's time to try something else.