And what do you propose happens to vaccinated people who occupy ICU beds? Or, for that matter, to other groups of people with an "illness that could have been

And what do you propose happens to vaccinated people who occupy ICU beds? Or, for that matter, to other groups of people with an "illness that could have been prevented by a widely and freely available measure"? A few spring to mind immediately – obesity first and foremost. In broad terms, I agree with your approach: incentives at the personal level. Bottom-up. But in many countries (mine included, in EU), "health insurance" is really just a tax. There's no connection between your health & behaviour, and the "insurance" cost or fulfillment. So what you propose would essentially amount to privatizing health care, or at least turning it from an income tax into real insurance.