Rushed TennCare financing overhaul creates unnecessary risks, lawmakers say

Tennessee Senate Democrats
2 min readJan 14, 2021

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NASHVILLE — Rushing a major ​overhauling of TennCare, Tennessee’s healthcare coverage program for low-income residents, could have painful consequences, according to Senate Democratic leaders who spoke out against measure on Wednesday.

“I believe TennCare has good intentions with this waiver, but unanswered questions and unforeseen consequences far outweigh theoretical benefits,” Sen. Raumesh Akbari said. “There are no guaranteed savings. There is no guarantee of new health coverage for families in need. There’s no proof this financing scheme is even legal.”

Breaking from typical first week of session norms, the supermajority suspended the rules Wednesday to immediately consider a Medicaid waiver approved by the Trump administration just days before he will leave office.

“If this is as a good of a proposal and as good of an idea and is good policy as has been suggested, I don’t understand why we would pass it in four days at a time we don’t usually even consider legislation,” Sen. Jeff Yarbro said. “It’s just a gigantic break from tradition.”

While Tennessee’s uninsured rate has climbed to 10 percent, the controversial proposal does ​not guarantee new health coverage for anyone who does not currently qualify for TennCare.

In Senate Health Committee testimony, TennCare Director Stephen Smith poured cold water on the idea that the proposal could extend health coverage broadly to families in need. Instead, Smith, making no promises, said there could be room for “targeted investments” in health coverage years after implementation.

“We have to be careful… it’s kind of a year to year thing,” Smith said. “These are sort of non-recurring revenues that would be coming in.”

Both ​national and local policy experts predict the waiver, if given final approval from the legislature, will quickly end up in court.

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Tennessee Senate Democrats
Tennessee Senate Democrats

Written by Tennessee Senate Democrats

Fighting for everyday people in the Tennessee General Assembly

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