This will result in many people choosing to spend nothing on 'day to day' healthcare. Subsequently, this 'deferred maintenance' will result in increasing rates

This will result in many people choosing to spend nothing on 'day to day' healthcare. Subsequently, this 'deferred maintenance' will result in increasing rates of catastrophic events, which will drive up costs for that part of the system. Giving cash (or cash equivalents) to people is probably not a good solution.