Barack Obama’s signature health-care law is struggling for one overriding reason: Selling mispriced insurance is a precarious business model. The problem isn’t technical or temporary; it’s intrinsic to how the law was written. By incentivizing insurers to misprice risk, the law has created an unstable dynamic. Total enrollment this year will be barely half the 22 million the Congressional Budget Office projected just three years ago. Premiums, meanwhile, are set to skyrocket, which will further hamper enrollment. It isn’t clear how this can be fixed.
http://www.wsj.com/articles/the-unstable-economics-in-obamas-health-law-1471452938
