Tenn. Health Insurance Plan Advances With Sunset Amendment

Tennessee Gov. Phil Bredesen’s proposed health insurance initiative was unanimously approved by a House subcommittee after being amended with a six-year sunset provision.

The “Cover Tennessee” proposal is aimed at reducing the state’s uninsured population of more than 600,000 adults and 150,000 children.

Those who sign up for the adult plan would share the cost of premiums with the state, while businesses would be given the option of contributing. Individuals could maintain their health insurance while moving from job to job.

The amendment brought in the House Commerce industrial impact subcommittee would allow lawmakers to evaluate the program every six years.

“I think that legislators are in the mood where we really want to be careful what we do,” said Rep. Mark Maddox, a Dresden Democrat and co-sponsor of the governor’s plan. “I think the idea of allowing us to look at it every six years will give the Legislature another opportunity to see where the program is.”

He said lawmakers don’t want a repeat of TennCare, the state’s expanded, and expensive, Medicaid program covering 1.2 million residents. Escalating costs at TennCare last year led the governor to cut 191,000 adults and reduce benefits for thousands of others last year.

TennCare disenrollees with pre-existing conditions would be granted waivers to sign up for the new Cover Tennessee program.

Other working adults, pregnant women and children living in households making less than 2.5 times the federal poverty level, $24,500 for an individual, $50,000 for a family of four, would be eligible for the program.

A $150 monthly premium would be split equally among the state, the employee and the employer. If the employer chooses not participate, the individual would take over that share.

Finance Commissioner Dave Goetz said he welcomes lawmakers’ involvement in the new initiative.

“As we work our way through these different issues, we’re trying to address any concerns that have been raised,” he said. “We’ve been meeting individually with a lot of different legislators so they have a chance to ask questions.”