Revenue Cycle

Tennessee may cut state health program that aids poor, uninsured

Patient Financial Services Weekly Advisor, November 12, 2004

Due to financial difficulties, Tennessee Gov. Phil Bredesen said November 10 he plans to dissolve TennCare, a state health program that covers those who are Medicaid eligible or have no health insurance.

If the program is cut, as many as 430,000 people-mostly families of the working poor whose income exceeds Medicaid's limits-will not receive state coverage, according to an Associated Press (AP) report.

The remaining 900,000 or so would continue to get coverage under basic Medicaid, according to AP.

The governor said he would try for about another week to work out an agreement to keep the program.

TennCare offers healthcare coverage for 1.3 million state residents who are poor, uninsured and/or disabled. It covers about 22% of the state's population, AP reported.

TennCare's annual cost is $7.8 billion; $2.5 billion comes from the state.

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