It's mathematically coherent, but it's value relies upon the assumption that we are already spending thousands out of pocket (but it's not taxed).

I prefer the option of don't spend thousands out of pocket, pay taxes on the unspent income. If I'm paying 100% of my healthcare costs, what good is the health insurance?

Here I think it boils down to whether one thinks it's okay for everybody to spend tens of thousands of dollars per year on medical care, as long as they (probably) aren't bankrupted.

If so, then they are probably more likely to view "don't bankrupt me bro" as the use case for health insurance, rather than "I need affordable medical care".