Tennessee Newspapers Comment on Access MedPLUS’ ‘Sudden Collapse,’ Need for TennCare Reform

The "sudden collapse" of Access MedPLUS, the largest health plan in the state's Medicaid managed care program, should "force" Tennessee to "assure" taxpayers that private firms with access to public funds are held to "the highest standards of accountability," the Memphis Commercial Appeal writes in an editorial (Memphis Commercial Appeal, 10/23). On Oct. 18, Tennessee officials "seized control" of Access MedPLUS after the health plan "abruptly fired" 300 employees without notice or severance pay, and moved enrollees on Oct. 19 to BlueCross BlueShield's TennCare Select plan. The state originally had planned to shift Access MedPLUS beneficiaries to the new plan on Nov. 1, the day after Access MedPLUS' contract with the state expires (Kaiser Daily Health Policy Report, 10/22). A state audit of the health plan found that as of June 30, Access MedPLUS, which provides care for about 279,000 TennCare beneficiaries, had a $54 million negative net worth -- "well below" the $12.5 million the state requires for participating TennCare plans (Kaiser Daily Health Policy Report, 10/17). With Access MedPLUS unable to meet its financial commitments, the editorial says that TennCare enrollees and state taxpayers are "the victims of [a] serious case of public resource mismanagement." The editorial states that while state Department of Commerce and Insurance officials have provided details about the MCO's finances, "full disclosure" will be necessary to restore the public's "confidence" in the state's ability to protect its assets and "in the TennCare program as a whole." The editorial concludes that since TennCare is a "vital state program," it "needs the support of the people who pay its bills" (Memphis Commercial Appeal, 10/23).

TennCare's 'Myriad' Problems
Stating that TennCare "obviously is in deep trouble," an editorial in the Chattanooga Times & Free Press notes that TennCare's problems are Tennesseans' problems "because ultimately we pay the bills, through federal and state taxes." Noting myriad issues with the program, such as "too high" prescription costs, a lack of "sound" insurers and some enrollees who "should not be on TennCare," the editorial says TennCare reforms recently proposed by Gov. Don Sundquist (R) "are not really satisfying to anyone, and still must gain federal approval." The editorial concludes that since "too much is expected" of TennCare at "too high" a cost, a solution seems "impossible" (Chattanooga Times & Free Press, 10/23). For further information on state health policy in Tennessee, visit State Health Facts Online.