Could Sending the Money to State Governments Push Healthcare Spending Down?

I think it is possible to lower healthcare spending dramatically without loss in health (see here: Article Contends Healthcare could be 80 to 90% Cheaper Based on Direct labor Costs And here Cut Medicine in Half

But what incremental steps could get us moving in that direction? One Idea I had was for the Federal Government to send all the money they would have spent on healthcare to the states and require that the state Government's cover the elderly and poor. The money would be sent on an age adjusted per capita basis.The state Governments would be allowed to spend the money as long as they choose cover those over 65 years old and the poor, as Medicare and Medicaid do today

Arizona and Utah have much lower medical spending than do Massachusetts, New York and California so they might be able to cover everyone in the state without adding money.  There is a lot of bad regulation of medical care at the state level. The states that spend the most would have to augment the federal money with their own tax money and the states that spend the least could use the excess wherever they choose.

The states do most of the healthcare regulation  and a lot of regulation is bad. This would motivate the high spending states to regulate with more of an eye toward keep spending down.