(MONEY Magazine) – THE situation is shocking: an estimated 34 million Americans with no health insurance at all, millions more threatened with financial ruin by reduced benefits and escalating medical bills. What can be done? What must be done? In May we asked for your ideas, and hundreds of you sent us thoughtful letters. Broken down by topics, the highest percentage of writers advocated national health insurance, but were divided on how to fund it. Reluctantly, very reluctantly, many thought some form of taxation would be needed. The other dominant issue was how to cap rising health-care costs; popular targets were malpractice lawyers and ''unnecessary'' hospital technology. A selection of your solutions is presented here, followed on the next two pages by the views of professional health-care experts who participated in a MONEY roundtable discussion. We will forward all the letters we receive to the Senate Finance Committee and the House Ways and Means Committee, which have been holding hearings on the health-cost crisis.

I dread the mangled, tangled bureaucracy it would create, but I feel that national health insurance for everybody is the only answer.

Joan K. Symons Houston

Let the government take over. This is the first time in my life I ever thought a socialistic idea was the only solution. Name withheld Dallas

It is shameful that in a country as wealthy as ours, health insurance is inaccessible to a large segment of the population because of poverty or a pre- existing medical condition. The answer is government funding. Nationalize health insurance, to be available to everyone, and raise federal income taxes by a flat percentage to pay for it. In addition, demand co-payment by the patients, scaled according to the patients' income. Those people with minimum income would pay only a token fee. Rose-Marie Ullman San Francisco

A small, 1% national sales tax should be considered to finance a national health plan. ; John H. Dent Falls Church, Va.

The solution already exists -- in Medicare. The basic system is in place. What we ought to do now is expand it to meet the needs of the entire population. Joseph J. Black Forest Hills, N.Y.

Pass a law at all of the state legislatures, tacking a 50 cents charge on every water bill. Use this money to build a fund to provide health insurance for everyone. N.P. Marchesotto Port Richey, Fla.

There could be a relatively simple solution to the problem of adequate medical care for everyone. Why not press Congress to provide for everyone the same kind of medical care they provide for themselves at taxpayers' expense? We're paying the costs for them. Why not let us also pay the costs for ourselves? William Papier Columbus, Ohio

The most feasible solution is health-care insurance -- including catastrophic and long-term health care and nursing-home care -- for everyone. The private sector can provide it best. Reputable private-sector health-care insurance companies can be engaged by a federally sponsored management consortium to develop actuarily sound coverage and to service policies. Everyone would be eligible for coverage regardless of any pre-existing medical conditions they may have. Eligibility would be based on a filed and current federal income tax return. The insurance premiums would be based on your ability to pay according to vouchers issued by the IRS. Name withheld Anthony, N.M.

Government should promote tax-break incentives for insurance companies to accommodate people who need coverage. Mike Maloney Marietta, Ga.

Limit all fee increases for health-care providers to only annual cost-of- living adjustments. Limit drug manufacturers, equipment companies and all other suppliers of health-care goods and services to cost-of-living price adjustments. Pass legislation to limit the liability of health-care providers. Continually review and revise all regulatory requirements for health-care institutions to minimize unnecessary costs. Emphasize universal preventive-care programs. Richard P. Hoffman, Pharm. D. Margaret A. Hoffman, M.B.A. Mount Clemens, Mich.

Here's how to reduce costs: We need litigation reform. The fear of litigation pushes most doctors to practice ''defensive medicine.'' Ordering a multitude of tests that may be only marginally useful but will look good in case of a malpractice suit probably raises system costs by tens of billions of dollars annually. And we need higher insurance deductibles. Deductibles on most employer medical plans are too low and invite overuse of the medical system. Barry Carol Aberdeen, N.J.

Malpractice claims should be judged by a board of retired physicians and judges, with a fair price paid to those deserving it. Let's not give 30% to 50% to the attorneys. Margaret M. Queen Clarksville, Tenn.

We need regional hospital boards of nonprofit hospitals so that decisions about the purchase of expensive equipment can be weighed against the region's actual needs. Too often we see a $4 million piece of equipment come on-line only to find hospitals within a few miles of each other purchasing the same machine. Doctors must be allowed access to a range of hospitals as well. I also think there is a great need for ''volunteer health care'' that has never been tapped. I'm thinking of physicians who have retired and would gladly give a few hours per week to a health-care center to help those without insurance. They can't do this because of the high cost of malpractice insurance. All states should adopt a Good Samaritan liability exemption so that doctors who wish to volunteer at a free clinic may do so without fear of litigation against their personal wealth. Tom Watkins State Representative 44th District, Ohio House

What about preventive ''wellness'' tax breaks for low- to middle-income people who pass voluntary drug tests, have the right weight for their height and don't smoke? We need to be more personally responsible. Mary Anderson Broken Arrow, Okla.

Older people have a difficult time getting health insurance owing to pre- existing conditions. If they do get insurance, the cost is prohibitive. Who would have believed a few years ago that the monthly cost of a medical insurance premium would be the same as, or more than, a monthly mortgage payment. Sandra Solomon Casselberry, Fla.

What about people who can't get coverage? Adequate health coverage for the uninsurable should be available the same as coverage for uninsurable automobile operators. If an applicant is denied coverage by at least three companies, he would be eligible for this ''uninsurable pool.'' The insurance companies doing business in the state would take these people in proportion to the amount of business they write in the state. Thomas R. Jones Sheffield, Ala.