Tennessee unveils TennCare block grant proposal, pushes savings split with federal government
Tennessee formally unveiled its proposal Tuesday for an unprecedented Medicaid block grant that could become the first of its kind in the nation.
The proposal, if approved by the federal government, would allow Tennessee to keep some of the money saved by running its program more efficiently in theory allowing the state to boost health benefits for those covered by TennCare or to eventually expand coverage, though the state has not pledged to do the latter.
It's a deal Gov. Bill Lee said could result in Tennessee collecting as much as $1 billion in savings each year to expand services offered through Medicaid, but officials stressed that number is contingent on negotiations that have not yet started with the Centers for Medicaid and Medicaid Services in Washington, D.C.
The savings estimate is based on recent data on annual spending by TennCare, the state's Medicaid program that has consistently come in below healthcare spending projections by CMS. That means Tennessee saved the federal government billions of dollars as a result, but has not been rewarded for doing so, the state argues.
Read more: https://www.tennessean.com/story/news/politics/2019/09/17/tennessee-unveils-tenncare-unprecedented-block-grant-proposal-federal-savings-opens-public-comment/2225859001/