Most Tennessee Gubernatorial Candidates Support Current Governor’s Reform Proposals for TennCare

Most of the candidates vying for Tennessee governor in the November 2002 election say that TennCare reform proposals by current Gov. Don Sundquist (R) are a "step in the right direction," the Chattanooga Times &Free Press reports (Commins, Chattanooga Times & Free Press, 11/24). Sundquist's "controversial" proposal, to be sent to federal officials as a modification of the existing TennCare waiver, would scale back the program to a managed care plan -- called TennCare Medicaid -- for Medicaid-eligible residents. Sundquist's plan also calls for the creation of TennCare Standard, which would offer benefits similar to those under a commercial managed care plan, and TennCare Assist, which would offer "premium assistance" to low-income workers to purchase private health insurance (Kaiser Daily Health Policy Report, 11/19). Critics of Sundquist's plan have said the reforms will "dig a $500 million hole in public health in the state each year" and will shift costs to local governments and lead to higher private health insurance premiums. Sundquist, however, said his proposal will save $1.5 billion over the next 10 years. The Legislature's TennCare Oversight Committee is expected to review Sunquist's proposals this week.

Candidates' Opinions
The following is how the six potential candidates to replace Sundquist, who is barred by term limits from seeking a third term, view the reform proposals:

• Knox County District Attorney General Randy Nichols (D) said he does not support the reforms because 180,000 Medicaid-ineligible people would lose health coverage under TennCare. He said, "There are a number of issues we could look at, but to take helpless people off the rolls is not the first thing we should do."
• U.S. Rep. Van Hilleary (R-Tenn.), the "presumed" Republican front-runner, said the reforms are "a step in the right direction," and if the proposals are enacted, "TennCare would be on its way to being properly restructured."
• Phil Bredesen (D), the former mayor of Nashville, said separating the Medicaid eligible and ineligible populations is a "sound idea," but added that he is "concerned" about the plan to drop people who are uninsurable.
• Jim Henry (R), the former state House minority leader, said the reforms could "shore up" public confidence in TennCare. "People are very unhappy with how TennCare is administered and the fact that it is better" than insurance in the private market, he added.
• Charles Smith (D), former chancellor of the Tennessee Board of Regents, said that while reforms are "obviously needed," part of the problem is that TennCare has been "poorly managed." He added that he is "not sure" if dropping Medicaid-ineligible people from the program "is the right thing to do."
• Former state Sen. Andy Womack (D) said the proposal is "headed in the right direction," but added that he would withhold final judgement until CMS reviews the plan (Chattanooga Times & Free Press, 11/24).