Tennessee Governor’s FY 2003 Budget Proposal Would Increase State Spending on TennCare, Drop Some Beneficiaries

Under Gov. Don Sundquist's (R) proposed fiscal year 2003 budget, Tennessee would spend an additional $114 million on TennCare, the state's Medicaid managed care program, but the program's enrollment would drop from 1.43 million to about 1.36 million, the Nashville Tennessean reports. The budget plan, presented on Feb. 21 to the state House Finance, Ways and Means Committee, would drop about 65,000 beneficiaries because of tightened eligibility requirements and another 33,000 who have private insurance and no longer qualify for coverage under TennCare. The Tennessean reports that the budget also accounts for about 25,000 new beneficiaries. Although some lawmakers criticized the plan for dropping some beneficiaries, Deputy Finance Commissioner John Tighe, who oversees TennCare, said, "Unless I missed something, the state's broke. I support the governor and his position, which is, let's at least try to cover those most needy with the limited resources we have" (Snyder, Nashville Tennessean, 2/21).

Another Proposal
House Finance Committee Chair Matt Kisber (D) also submitted a budget proposal on Feb. 21 that calls for returning TennCare to a standard Medicaid program, which would drop about 350,000 current beneficiaries (Wade, Memphis Commercial Appeal/Knoxville News-Sentinel, 2/22). Those beneficiaries are now covered by TennCare because they are uninsurable in the private market or uninsured and do not qualify for traditional Medicaid. Kisber said he would not support such a plan and only presented it to illustrate lawmakers' options. The plan also calls for the state to reduce its spending on the program by about $50 million, which would result in a loss of federal matching dollars. Mental Health Commissioner Elisabeth Rukeyser and Deputy Mental Retardation Commissioner Sandra Sturgis said their agencies would need "large infusions" of state dollars to replace the lost federal funding. Rukeyser said her department would need $50 million from the state to pay for mental health services for individuals who no longer qualify for TennCare benefits. The state uses federal funds to supplement its own spending on services for TennCare beneficiaries with mental illnesses and with mental and physical disabilities (Wade, Memphis Commercial Appeal, 2/22).