I guess this is the financial price of your proposal: higher fares for everyone with the money going to insurers of last resort.
Higher fares, lower taxes since the government is now acting as insurer. Total costs balance out IF you assume "security" (search) costs stay the same. However, since the airlines would actually have incentive to do the job efficiently and expeditiously (so they can sell more tix), total costs would come down. Significantly in my estimation.