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One item that isn't addressed above, but is actually fits in very well, is charity. Because all bills that are not paid go to US treasury it offers an opportunity for others to contribute on a volunteer basis toward the medical care of somebody who cannot afford it. This could be done on an individual basis, or some sort of aggregate basis (either in whole, or a specific area like cancer treatment). Bills would be categorized on key fields and as contributions came in they would be paid/reduced accordingly.

These could be made to be tax deductible contributions as long as there is no relationship between parties. The increase in 'collections' would outweigh the income tax decreases.