Kudlow makes two major arguments in this piece. First, he lays out in brief a cost-effective way to provide affordable health care to the tens of millions of Americans who legitimately need it (he also points out that several million Americans who qualify for Medicaid simply haven't signed up for it yet). Second, he points out the disastrous consequences government-run health care, arguing that people spend their own money the most wisely.
It's a classic point straight out of Milton Friedman. Imagine if you are given $1000 that belongs to someone else and are told to spend that money for the anonymous person. How would you spend that money, knowing that it was given to you without doing anything to deserve it and knowing that you will never have to face the mystery money-giver in person? You might be able to invest it, but chances are you're going to squander a good bit of it.
Now imagine it's your own $1000. You had to work for it. You know exactly what you can and cannot do with that money. You know your own needs and desires better than anyone else. Chances are you're going to spend that $1000 pretty efficiently. Yeah, you might "waste" it on something you don't need, but at least you had a say in the matter, right?
As Kudlow witheringly points out, the Democratic Party wants to control the American health care system, plain and simple. He offers a viable alternative to socialized health care, an alternative that won't break the bank, will cost a fraction of Obama's current plan, and, most importantly, will provide health care benefits to the Americans who actually need it. The only reason the Democrats would object to such a reasonable alternative is because they don't really care about the uninsured in the first place. They just want the government to have more power and more influence.
Conservatives do care. We aren't just monsters who want to leave the uninsured, well, uninsured. Our health care system is in pretty bad shape financially and health care has become prohibitively expensive for those who lack insurance. I myself have been screwed over by high health care costs, as my last job did not provide a group health plan. Buying health insurance privately is ridiculously expensive, and cheap plans have high deductibles and basically cover catastrophic events.
Conservatives aren't opposed to change. We just oppose change that is going to lead to government largesse, inefficiency, and monopoly.