Former Democratic National Committee Chairman Howard Dean swam against the current of his party and backed a McKinsey & Co. survey that said Obamacare will cause a third of private businesses to drop their employee health coverage.
Dean told MSNBC’s Morning Joe: “The fact is it is very good for small business. There was a McKinsey study, which the Democrats don’t like, but I do, and I think it’s true. Most small businesses are not going to be in the health insurance business anymore after this thing goes into effect.”
Democrats have discredited this study, mainly because it goes against Obama’s assertions that most Americans who don’t want to change healthcare providers won’t have to, but businesses dropping coverage will force most employees to do just that.
The President also said his health proposals will not add “one penny” to the deficit, but the figures in the study that Dean supports suggest that 30 percent of employers — not the government’s original figure of just 7 percent — would drop private coverage as a result of Obamacare. Doing so will result in an overall price increase of roughly $1 trillion for Obamacare, a definite addition to deficit spending.