How is this nannyhood? Most people will be able to pay for their health expenses through the private sector. The few who have to depend on government loans will be no different than those who currently depend on government loans for schooling.
The only "nannyish" thing about this is making health insurance illegal. A reasonable conservative argument can be made against insurance as it results in people paying for the support of others, to whom they have no relation.
Under the proposed system private charities could offer to pay health expenses and you would be free to contribute to those charities.
It is nannyhood in orange blazing letters ten feet high.