Tennessee Gov. Bill Haslam announced he would not expand TennCare, the state's Medicaid program, opting instead for a premium support-style system that would make private insurance more affordable for the poor.
If the governor had backed President Barack Obama's plan for a Medicaid upgrade, an estimated 140,000 of Tennessee's nearly 1 million uninsured population who fall at or below 138 percent of the federal poverty line would be eligible for coverage, with the federal government picking up all of the added cost and no less than 90 percent of it after three years. In the first year alone, an extra $1.4 billion in federal money would flow into the state's program, according to a report by USA Today.
Gov. Haslam's plan, following in step with several other Republican governors', would request federal funding for a voucher system to enable residents up to 138 percent of the poverty line to pay for private health insurance, coupled with co-pays for the upper income levels eligible for the program "so the user has some skin in the game when it comes to healthcare incentives."
Federal regulators would still need to approve the plan. In a statement, Tennessee Hospital Association President Craig Baker said he is "disappointed" CMS hadn't yet released information regarding whether plans similar to the governor's in other states would be approved, adding that the association believes "this is the correct approach for Tennessee."
More Employers Switching Health Benefits to High-Deductible, Health Savings Account Plans
Moody's: Cuts to Disproportionate Share Payments Will Weigh Heavy on States and Safety-Net Hospitals
If the governor had backed President Barack Obama's plan for a Medicaid upgrade, an estimated 140,000 of Tennessee's nearly 1 million uninsured population who fall at or below 138 percent of the federal poverty line would be eligible for coverage, with the federal government picking up all of the added cost and no less than 90 percent of it after three years. In the first year alone, an extra $1.4 billion in federal money would flow into the state's program, according to a report by USA Today.
Gov. Haslam's plan, following in step with several other Republican governors', would request federal funding for a voucher system to enable residents up to 138 percent of the poverty line to pay for private health insurance, coupled with co-pays for the upper income levels eligible for the program "so the user has some skin in the game when it comes to healthcare incentives."
Federal regulators would still need to approve the plan. In a statement, Tennessee Hospital Association President Craig Baker said he is "disappointed" CMS hadn't yet released information regarding whether plans similar to the governor's in other states would be approved, adding that the association believes "this is the correct approach for Tennessee."
More Articles on Medicaid Expansion:
Businesses, Advocates Urge Governors to Support Medicaid ExpansionMore Employers Switching Health Benefits to High-Deductible, Health Savings Account Plans
Moody's: Cuts to Disproportionate Share Payments Will Weigh Heavy on States and Safety-Net Hospitals