The Affordable Care Act can be saved, but it falls on the nation's legislation to be the saviors, FiveThirtyEight reports.
As more insurers pull out of the healthcare exchanges, speculation that the ACA is near the end of its lifespan is rampant, but there are three easy steps to save it.
1. Companies need to adjust to the market that the ACA has developed.
"Obamacare losses aren't that big, considering that healthcare is a $3 trillion-plus business," Tim Mullaney writes.
Through the beginning of 2016, Aetna, UnitedHealthcare and Humana earned $5.5 billion on $150 billion in revenue. Credit Suisse reports the companies won't lose more than $2 billion on the ACA.
Some insurers have already found success. Molina Healthcare and Centre are making money on the exchanges. Before the ACA was implemented, both companies had already created plans that were aimed at disadvantaged customers. They took a frugal approach into the exchanges and are making money, while keeping their plans rates low.
2. Regulators need to accommodate insurers and a sicker-than-expected patient base coupled with rising prescription costs.
Mr. Mullaney argues that regulators need to enforce the fee for individuals that don't have insurance, because funds from a healthier population can lessen the cost the sickest patients have on the insurers. He also suggests regulators limit the use of extremely expensive drugs, negotiate down the price of the drugs or require insurers share the cost of the losses associated with the higher-risk patients.
Mr. Mullaney said the above are all temporary fixes.
3. To address the problem fully: Congress needs to increase the subsidies paid to the middle-class to make health insurance more appealing to young and healthy workers. Like what it has done in the past for fixing Medicare in the 1990s and 2000s.
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