Tennessee Gubernatorial Candidates Criticize Sundquist Administration for TennCare Budget Shortfall

The two leading candidates in Tennessee's gubernatorial election said the estimate showing that TennCare, the state's Medicaid managed care program, will overrun its budget by $329 million by June 2003 "is a clear signal" that the program has not been reformed, the Chattanooga Times Free Press reports (Commins, Chattanooga Times Free Press, 8/22). TennCare Director Manny Martins told members of the joint legislative TennCare Oversight Committee on Aug. 20 that the expected budget shortfall was caused by higher-than-expected prescription drug costs and the state's uncertainty about how many beneficiaries will be dropped from the program after a reverification process (Kaiser Daily Health Policy Report, 8/21). Democratic gubernatorial nominee Phil Bredesen criticized Gov. Don Sundquist (R) for failing to "fi[x]" the program, the Tennessean reports. "The responsibility for this has to fall on the (Sundquist) administration," he said, adding, "It is fairly outrageous six weeks into the budget year that we have this issue coming up." Frank Cagle, communications director for U.S. Rep. Van Hilleary (R-Tenn.), the Republican gubernatorial candidate, said, "Sundquist has said TennCare has been reformed and we don't need to worry about it, but this goes to show there's a lot more to it. The waste, fraud and abuse has never been addressed and the rolls are still dangerously high. Until these issues are dealt with it won't be enough to reform TennCare, no matter what kind of waiver you get" (Chattanooga Times Free Press, 8/22). A waiver approved earlier this year by the federal government allows the state to restructure eligibility and benefits offered under the program. The waiver calls for the creation of TennCare Medicaid, which would cover Medicaid-eligible individuals, and TennCare Assist, which would provide low-income workers assistance in purchasing private health insurance. Further, the waiver permits the creation of TennCare Standard for adults with no access to group insurance and annual incomes below the poverty level, or $8,860 for an individual; children in families with annual incomes below 200% of the poverty level, $36,200 for a family of four, and no access to group insurance; and medically eligible people with illnesses that make them uninsurable (Kaiser Daily Health Policy Report, 8/21). Hilleary said that any savings from reforming the program should be used for higher education (Dries, Memphis Commercial Appeal, 8/22).

Accessing Mental Health Care
In other TennCare news, the Chattanooga Times Free Press reports that admissions at Moccasin Bend Mental Health Institute have "risen sharply" since other providers have stopped accepting TennCare beneficiaries. In July, Valley Behavioral Health System stopped accepting TennCare beneficiaries after negotiations with its parent company, HCA Healthcare Corp., and Magellan Behavioral Health fell through. At the same time, admissions at Moccasin have increased to 1,190, up from 1,090 at the same time last year. The Free Press reports the increased admissions have adversely impacted TennCare beneficiaries' access to mental health care (Park, Chattanooga Times Free Press, 8/22).