Steve Halper, an analyst at FBR Capital Markets, said not only does the administration need to beef up screening efforts but also needs to work more actively with insurers.
"The industry, broadly defined, needs to engage with the government and decide how to provide the correct incentives for the insurance companies to participate in the exchanges," he told CNBC's "Power Lunch." "Because right now, the for-profit companies won't participate unless there's an adequate return. They can take their capital and deploy it elsewhere in order to drive earnings and return to shareholders."
Williams added that if insurers face regulatory pushback and are asked to price premiums at rates that are not financially supportable, they might discontinue participation in Obamacare.
However, Smolinski holds out hope for reconciliation. With the right response, she said the government could smooth things over with healthcare insurers.
"I think it is a partnership so I think if insurers feel like that other end of the bargain is being agreed to, then things will potentially work out," Smolinski said.