Tennessee Officials Criticize CMS Proposal To Cap Hospital Payments; TennCare Waiver Negotiations Continue

July 24, 2007 – 10:36 pm | posted in Medicare

Tennessee Gov. Phil Bredesen (D) on Wednesday said he would become personally involved in negotiations with CMS to renew TennCare and accused the federal government of placing “unreasonable demands” on the state, the Memphis Commercial Appeal reports. TennCare was set to expire June 30, but the state received two extensions for the program to Aug. 15 while it negotiates a waiver with CMS.

TennCare Director Darin Gordon last week said CMS proposed new caps on Medicaid payments to hospitals before contract negotiations were finalized. According to Gordon, other states with similar Medicaid funding structures would not be subject to the caps. State officials say the caps could cost Tennessee up to $400 million over three years and would “severely reduce” funding for the program at a time when the state is planning to expand enrollment to more adults. The payment caps particularly would affect not-for-profit hospitals that provide large amounts of charity care, according to the Commercial Appeal.

Bredesen said, “We’re not asking for anything different from what other states are getting. At the same time, Massachusetts, California and Florida have all gotten huge sorts of additional benefits. We have saved [the federal government] a lot of money, and they are still trying to pull us back even further, and I just don’t believe it’s fair and appropriate” (Locker, Memphis Commercial Appeal, 7/19).

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