One neat idea -- bringing down health care costs

I thought Governor Blagojevich had a neat idea on bringing down health care costs by copying the Cleveland model where the local chamber of commerce brought together all the small businesses in order to buy cheaper health insurance for all members. Blagojevich suggested that the State of Illinois would partner with every local chamber and create a statewide program to buy health insurance for every small business.

Even better would be if the government could run all health care for businesses -- because that would make our exporting companies more competitive. We're at a competitive disadvantage in manufacturing now relative to other countries with government-run health care. Our manufacturing companies have to include the cost of health care (and that's the for-profit insurance company provided health care which includes the passed-through cost of covering the uninsured) in their products. European manufacturing companies do not, because health care is a government program. So our products are more expensive than products from countries with government-run health care.

So I wonder if Illinois went Canadian and just set up a state-run health care system, would that make Illinois manufacturers more competitive than those in other states? And would that be a huge inducement to businesses to move to Illinois so that they wouldn't have to include the cost of health care in their bottom line at all?