Tennessee Governor Proposes Insurance Plan To Cover Up to 185,000 State Residents

Tennessee Gov. Phil Bredesen (D) on Monday announced a multifaceted health insurance plan called Cover Tennessee that could provide coverage to as many as 185,000 residents over the next three years at an estimated cost of $190 million, the Tennessean reports. The "centerpiece" of the plan is a program that would offer basic health insurance to the working poor who have been uninsured for at least six months, according to the Tennessean. The program, called CoverTN, would cost about $150 per month for an individual, with costs divided equally among employers, employees and the state. Employers with 25 or fewer workers would be able to enroll in the program if at least half of their employees meet a specified income requirement. If an employer declined to participate, employees could still enroll and pay two-thirds of the cost of coverage. Bredesen said premiums would be adjusted depending on an individual's age, whether they smoke and whether they are "substantially overweight." Beneficiaries also would be expected to make copayments. Bredesen said he plans this fall to begin accepting bids from insurance companies to offer the coverage, adding that two contracts would be signed "to keep competition on the front burner" (Pinto, Tennessean, 3/28). Other proposals under Bredesen's Cover Tennessee initiative include:

• A plan to enroll about 150,000 uninsured children in SCHIP;
  
  
• Reinstatement of Tennessee's high-risk insurance pool to cover about 5,000 to 10,000 "uninsurable" adults with pre-existing chronic illnesses (Locker, Memphis Commercial Appeal, 3/27);
  
  
• A prescription drug plan called CoverRx that would provide access to discounted drugs for individuals ages 18 and older with annual incomes under 250% of the federal poverty level; and
  
  
• A $114 million public health initiative to combat obesity and diabetes in the state.