Dean Urges Small Businesses to Drop Healthcare Coverage

The former DNC chief says small businesses should abandon the healthcare market.

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Remember the concerns during the healthcare debate that firms might choose to pay a $2,000 per worker fine to dump employees into health insurance exchanges if it’s cheaper than offering coverage? Well, former Democratic Party boss Howard Dean is cheering them on. He reasons that coverage won’t change much and that this will free cash for businesses to be more competitive. “What I believe will happen, although it was not intended, and I think it’s going to be a good thing, although it’s going to create a large dislocation, is that the small business community will abandon the healthcare market and put all their employees into the exchanges,” Dean says. He calls the linkage between employment and health benefits a major disadvantage for American firms competing with foreign companies that don’t have to supply health insurance.

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