Not trying to draw too much of a comparison here, but Britain did this when they formally abolished slavery. It's still very controversial today, but it did thwart the opposition to abolition among Parliament's pro-slavery lobby and plantation owners, particularly in the Caribbean. Paying off health insurers for years' worth of profits would be very expensive, but on the flip side I doubt it would be as unpopular as the slavery payments.

https://en.wikipedia.org/wiki/Slave_Compensation_Act_1837