Anyway, in a libertarian USA, most if not all of that $1.2 trillion would stay in the hands of the people; that fact, along with a few other libertarian ideals, would mean a more prosperous people.
A more prosperous people, with the knowledge that the government no longer provides inefficient health care to others with their hard-earned money means... you guessed it. Also, a libertarian USA would mean cheaper /everything/ (including health care) because of the Austrian economic, free-market principles.
I truly believe it. I've got some excellent ideas based around for-profit charities. Imagine famous, fancy restaraunts situated in the big cities. The bottom floor sells wonderful food to the celebrities and rich folks. The rest of the building houses and feeds homeless people. Of course, it doesn't even have to be a fancy restaraunt, and it doesn't have to house homeless people.
Including $11 billion that would otherwise have been spent on tax collection.