I understand your point, but I do not agree that we need to go that far.  Rather than push for changes at the federal level, we should be demanding the states to more.  I think Mitt Romney has done some interesting things in Massachusetts.  Given the chance, and demanding our state legislatures take on the task, I think we could see some innovative approaches that would be better than anything that can be done on the Federal level. 

My fear is that anything done on the federal level will preempt state laws and insurance companies will be able to hide behind the federal regulations to walk all over the states.  The states will be powerless to do anything. 

Funny you mention ERISA - it too has had that effect to some extent.  In some cases it has denied insured remedies under state law that would allow the insured to recover punative damages and attorneys fees.  Individual policy holders have more power under state law than their counterparts who are insured under ERISA plans.  I think we would find out that we were all better off with state regulation than federal regulation.  Big insurance companies will be able to lobby one group to get their way.