Morning Briefing
Summaries of health policy coverage from major news organizations
Tennessee Reveals $7.9B Plan To Shift Medicaid Into Controversial Block Grant System
The Associated Press: Tennessee Unveils $7.9B Block Grant Proposal For Medicaid
Tennessee would become the first state in the nation to receive its Medicaid funding in a lump sum under a proposal seeking to drastically overhaul the program that provides health care services to low-income and disabled residents. Nearly four months after Gov. Bill Lee signed off on the idea, state officials released details of the estimated $7.9 billion Medicaid block grant plan Tuesday with the intent of submitting the final product to the federal government in November. (9/17)
Chattanooga Times Free Press: Tennessee Gov. Bill Lee Unveils Controversial $7.9 Billion TennCare Medicaid Block Grant Plan
"We're excited about the prospects, and we think we have crafted a waiver that is going to really mitigate the risk that Tennesseans have [from a block grant] but actually give us an opportunity to benefit from the efficiencies that we have and from the way that we run our program," Lee said during a Monday roundtable with Tennessee reporters. (Sherm, 9/17)
The Washington Post: Tennessee Becomes First State With A Plan To Turn Medicaid Into A Block Grant
If TennCare, as that state calls its Medicaid program, wins federal approval for its plan, it could embolden other Republican-led states to follow suit. It also almost certainly would ignite litigation over the legality of such a profound change to the country’s largest public insurance program without approval by Congress. Medicaid, originated as part of President Lyndon B. Johnson’s Great Society of the 1960s, is an entitlement program in which the government pays each state a certain percentage of the cost of care for anyone eligible for the health coverage. (Goldstein, 9/17)
CNN: Tennessee Seeks To Be First To Turn Medicaid Into Block Grant Program
Block grants have long been popular with Republicans, who see them as a way to control Medicaid spending. They were part of congressional Republicans' failed attempts to repeal the Affordable Care Act in 2017 and have been included in President Donald Trump's budgets. And the Trump administration, which would need to approve Tennessee's plan, has encouraged states to make historic changes to their Medicaid programs, including adding work requirements. (Luhby, 9/17)
The Wall Street Journal: Tennessee Unveils Draft Plan To Convert Medicaid To Block Grants
Democrats say the initiatives are an attack on safety net programs that would leave more people without health coverage, and advocacy groups could sue if block grants get approved. Republicans say the grants give states more autonomy and direct resources to beneficiaries who are most in need. “We’re pursuing what we believe the Trump administration wants us to pursue,” Republican Tennessee Gov. Bill Lee said in an interview. “Their goal is to give block-grant programs that deliver efficiency and innovation of services. If that happens across the country, the cost of Medicaid is lowered.” (Armour, 9/17)
The Hill: Tennessee Seeks To Become First State To Turn Medicaid Into A Block Grant
Administration officials have drafted a guidance that would make it easier for states to apply for a capped payment or block grants. That document has been under review by the White House Office of Management and Budget for months, but it could be released at any time. The administration has also been quietly trying to sell states on the merits of imposing block grants without congressional approval. Health and Human Services Secretary Alex Azar told lawmakers last spring that he had been having conversations with states interested in the idea. (Weixel, 9/17)
Nashville Tennessean: Tennessee's Medicaid Block Grant: How The Plan Is Supposed To Work
Currently, the federal government provides about $7.5 billion to $8 billion annually to pay for TennCare. This funding increases or decrease as the need grows or shrinks, and the money is theoretically limitless if the state continues to operate TennCare in accordance with federal guidelines. (Kelman, 9/17)
Modern Healthcare: Tennessee Proposes First-Of-Its-Kind Plan To Cap Medicaid Funding
Patient advocates say these requests go far beyond what the HHS secretary can allow. "Most of it is clearly a violation of federal law and not within the secretary's authority to waive," said Hannah Katch of the liberal Center on Budget and Policy Priorities. Representatives of Tennessee's hospital community were cautiously optimistic about the plan — mostly around to the prospect of sharing in the savings the state hopes to reap, but acknowledged they still have to dig into the details. (Luthi, 9/17)
