TN.gov Newsroom

State Will Be Able to Mitigate Budget Cuts

NASHVILLE – The State of Tennessee today received relief from U.S. District Court, resolving a long-standing court order that will help minimize planned budget cuts in TennCare’s effort to meet its budget reductions for next year.  The court granted the state permission to check the eligibility of 150,000 TennCare members, some of whom may no longer be eligible for the program.  They are all members of a class of enrollees subject to a 21-year old court order known as Daniels. 

NASHVILLE - Facing mounting revenue shortfalls, the State of Tennessee today provided updated information to the U.S. District Court in Nashville concerning potential budget cuts that TennCare faces as a result of the deepening economic recession. The state is seeking relief from a long-running lawsuit known as Daniels that, if granted, could minimize the planned cuts that are needed to help balance the state’s budget.

NASHVILLE – TennCare announced today the approval of a planned expansion of home and community services. The federal government recently approved an expansion that will allow TennCare to serve 2.300 more people in its Home and Community Based Services (HCBS) program for the elderly and adults with physical disabilities. With the expansion, TennCare will provide these services to 6,000 individuals this year. The funds for the expansion were approved by the General Assembly in the state budget that passed in May.

NASHVILLE – Through a competitive bid process, SXC Health Solutions Corp. has been awarded the Pharmacy Benefits Manager (PBM) contract with the Bureau of TennCare. The three-year, $35 million contract begins October 1, 2008. Two other PBM organizations, First Health and ACS, also submitted bids.

“In recent years, efficient management of our pharmacy benefit has resulted in savings of more than $1 billion of taxpayer funds,” said TennCare Director Darin Gordon. “We look forward to building on such successes, as we work with SXC.”

NASHVILLE — The TennCare Bureau announced today that BlueCross BlueShield of Tennessee (BCBST) and UnitedHealth Plan of River Valley, Inc. (United) are the prevailing bidders in both the East and West grand regions of the state for TennCare’s managed care organization (MCO) contracts. TennCare placed the managed care contracts up for competitive bid in January 2008. The Middle region’s competitive bid process was completed last year.