Former Democratic National Committee (DNC) Chairman Howard Dean said Monday that Senate Democrats' healthcare legislation is so diluted it threatens the party's 2010 chances.

Appearing on MSNBC, the former Vermont governor and outspoken proponent of healthcare reform charged Democrats were "playing with dynamite in terms of dividing the party.”

"The big problem is the policy. This thing has been pretty watered down," Dean said during the interview, noting the House bill was "better" than the "decent" Senate bill. "Right now, it's about as watered down as it can get and still be a real bill. For example, there's really no insurance reform in this bill, already."