Tennessee Governor Launches Insurance Program for Low-Income Workers

Tennessee Gov. Phil Bredesen (D) on Thursday "ceremonially launched" the CoverTN program, a health insurance program for low-income, uninsured workers that will be administered by BlueCross BlueShield of Tennessee beginning April 1, the Memphis Commercial Appeal reports (Locker, Memphis Commercial Appeal, 3/9). CoverTN is part of Bredesen's Cover Tennessee program, which aims to expand health coverage for low-income, uninsured working adults who do not qualify for Medicaid. Premiums for CoverTN will average $150 a month, with the state paying one-third of the premiums, employers paying another third and employees paying the remaining third (Kaiser Daily Health Policy Report, 12/20/06). Employers will be eligible for the program if they have 25 or fewer employees, at least half of whom have annual salaries of less than $41,000 a year, and if they have not offered health benefits for at least six months. Beneficiaries will pay no more than $25 for a physician visit, $10 for each generic prescriptions, $100 for an emergency department visit, $25 for hospital outpatient care and $100 for an hospital inpatient admission (Pinto, Tennessean, 3/9). Inpatient hospital costs are capped at $10,000 a year, and the maximum total benefit is capped at $25,000 annually (Memphis Commercial Appeal, 3/9). There is no enrollment cap for CoverTN. If 100,000 beneficiaries enroll over three years, the program will cost the state an estimated $130 million (Tennessean, 3/9). About 4,500 businesses have pre-qualified to participate (Memphis Commercial Appeal, 3/9).