Former Aetna CEO Ronald Williams said the ACA's risk pool equation is "flawed," and the next wave of healthcare reform needs to strike a balance between premiums collected from young individuals and the healthcare costs of older patients, CNBC reports.
"In healthcare you really need a balance of people who need healthcare today, tomorrow and in the future," Mr. Williams, current CEO of RW2 Enterprises, said during an interview with CNBC's On the Money. "The rate structure was set in a way that those who needed healthcare today got the most affordable premiums. That means typically older citizens got a much better deal."
Here are two thoughts from Mr. Williams on what ACA reform should look like.
1. Competition should be increased. Mr. Williams told CNBC low cost and flexible plans are needed to enhance competition so consumers have more options for plans. He also suggested straying from a "one-size-fits-all" approach to health plans.
2. Reform should take time. He said repeal and replacement of the ACA may take time, similar to the inception of the health law, which required years of negotiating and planning.
"We need to make changes in a thoughtful way. We need the input of hospitals, physicians, pharmaceutical companies, health insurers and consumers," Mr. Williams told CNBC.