Business Leader Tells Tennessee House Committee He Opposes TennCare ‘Pay or Play’ Proposal

The president of the Tennessee Association of Business on Aug. 27 told state lawmakers that his group is opposed to "pay or play" legislation aimed at increasing employer participation in and funding of TennCare, the state's Medicaid managed care program, the Nashville Tennessean reports (de la Cruz, Nashville Tennessean, 6/28). Such legislation would require businesses either to offer health insurance to employees or to pay TennCare to help cover the cost of their insurance (Kaiser Daily Health Policy Report, 6/12). Speaking to the "ad hoc" House "Pay or Play Committee," TAB President Dave Goetz said, "Health insurance is very volatile. If the committee makes it more expensive by their actions, it will drive more employers to not provide coverage." However, Rep. Gary Odom (D), the committee's chair, said, "I think the people of Tennessee are saying they don't want to spend another dime of hard-earned money to go to state government when they've got a program perceived to be a money pit." The Tennessean reports that pay or play legislation has an uncertain future, as the state in December will seek a new federal Medicaid waiver that could include splitting TennCare into three parts, and the state Senate, which would have to vote on any eventual plan, is not involved in the work of the House committee (Nashville Tennessean, 8/28). For further information on state health policy in Tennessee, visit State Health Facts Online.