Which bill? There are several. Having read most of the legislation I have to say that your assertion above is, to the best of my knowledge, incorrect.
Thats how they did it in Canada - its one of the models being looked at, though I really hope we steer clear of it.
And when the private insurance companies fail like the major banks did, what's going to happen? The buildings will stand but they'll be empty... or the government will spend your money bailing them out.
Thats virtually impossible, for two reasons. For one, hospitals can't turn people away. Two, they wouldn't go under - payments and projected costs are based on a constantly revised risk assessment, and payments are adjusted regularly. There is no reason an insurance company should ever be unable to pay out, and no similarity to banks (where money was loaned and unable to be paid back). I see no relationship between those two examples.
Still, I would be very impressed to see a model that actually worked while providing an appropriate degree of healthcare. The problem (despite what many people are concerned about, the "death council" as it were) for me is not end of life care, but intermediary care. Less expensive steps taken on non-life threatening issues which could cause other issues (physical and psychological).
I'm sure alot of people have had cysts - I had one. It was a minor thing, but it was getting bigger - and while not very visible, it was annoying. Under most plans (I did the comparison a while ago, way way way before Obama..... 2003ish? satisfying my own curiosity), it would have been left alone. I have great private insurance, it was removed by a surgeon I chose, who happened to be a reconstructive surgery specialist I knew (read: plastic surgeon, not the bigger boobs kind, but the fix-your-face-after-car-accidents kind - great guy). The cyst was underneath my jaw, if you feel the back of your jaw... that spot between the very back and your neck. You could imagine how something (as I found out) golf ball sized inside there could be annoying to you, despite not being visible to others. In most cases, this can leave an annoying scar.
Since I had someone doing this who knew what they were doing with regards to faces, growth, etc, the cut was made very precisely along my jaw line, and removed with great care. I've seen the scars from some other surgeries, and I'm very happy I was able to go this route with my insurance.
I do not feel any currently implemented socialized medical system would allow this degree of care, from what I have seen.
Is this a minor issue? Sure. But what if the cyst was more visible? Would it still be turned down (I've seen cases where it was, this is anecdotal)? If they removed it, would the same care be taken on such a visible area?
I have a hard time believing that it would be. And while it wasn't a huge deal for me, visible scarring can have severe psychological implications. Just ask any woman who lost a breast, people who were in car accidents, etc.
Just my opinion, but its something I'm concerned with regardless when it comes to any socialized medicine system.