Sen. Rand Paul, R-Ky., said Obamacare may have permanently damaged the health insurance industry.

In an interview Wednesday night, Fox News host Greta Van Susteren asked Paul if there was any way to roll back Obamacare to bring the market back to where it was.

"You could, but the president would have to admit that he failed and it's not going to work — and he may have to," Paul said. "This is worse than I ever imagined it could be."

Paul warned that the plan could get worse as young healthy people avoid purchasing high-priced health plans, which would raise premiums even further.

"By the end of the year, this become a high-risk pool, and only the sickest people get insurance and no young healthy people buy it — they have to readjust their prices and they go higher, and there's even more incentive for healthy people not to buy insurance, which drives the prices even higher," Paul said.