Health Plan That Began Serving TennCare Enrollees July 1 May Drop Out of Program

Better Health Plans, which began covering people in TennCare -- Tennessee's Medicaid managed care program -- July 1, has notified Tennessee of its intention to leave the program Dec. 31, the Nashville Tennessean reports. Better Health Plans President Warren Carmichael did not say why the insurer wanted to drop out of TennCare, but a state official said the company was unsatisfied with the monthly per beneficiary fee it receives. The Tennessean reports that last week, the state General Assembly raised the budgeted monthly fee for all TennCare beneficiaries 2.6% to $158 per enrollee. Still, some health plans have "complain[ed]" that the fee "has not kept pace with the rapidly rising cost of health care," the Tennessean reports. Carmichael said, "We don't want to leave the TennCare program. We're working hard with TennCare officials to find a way for us to continue." TennCare spokesperson Lola Potter added, "We're still trying to negotiate something. We want them to be part of TennCare." If Better Health Plans exits the program, 39,000 TennCare beneficiaries in the western part of the state will have to move to another health plan (Snyder, Nashville Tennessean, 7/17).