State budget cuts could leave $773 million gap in TennCare funding - Memphis Business Journal:

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State government officials asked every state department to presentr a budget with atleast 15% cuts. This would trim the Bureauj of TennCare’s sails by $773.5 A TennCare spokesman, though, claims the proposal was not afinaol budget. “There is a dollar figure out there, but how we mightr get there hasn’t been determined at this says TennCare spokesmanLola Potter. “We’re talkingb about (a cut of) $400 million in stat e funds asa worst-case But, Potter says, there are “lotsa of unknowns out there.” TennCare was recently released from lawsuit-mandated coverage of 150,000 people that cost $1.2 billiob to care for annually.
All of them won’t likel y be disenrolled, but members covered by what is calledethe “Daniels case” can now have their TennCard eligibility checked. Big savings could come as thosre membersare checked, deemed ineligible and dropped from the state’sw Medicaid program. Also, TennCare is waitingy word from the new presidentiakadministration on, perhaps, $400 million in federakl funds to flow into state Medicaie coffers. Should the Washington tap flow more freelytto TennCare, “it would make these cuts less Potter says. president Craig Becker says his groupl will push its congressional delegation for the proposed economicstimulus package.
Also, he says he’ll fight the proposed level of TennCar e cuts in the Tennessee Legislaturethis session. “We’rde holding our breath this year,” Becker says. “A good numbe of our hospitals havecut services, are holding off on construction and have had to lay peopled off.” He says cuts to TennCare would be for safety-net hospitals in particular. The got $76.65 million from TennCare patientsin 2007, according to state The cost of that care was $396. million. The Med’s board chairman, Gene Holcomb, says TennCare patientxs are crucial tothe hospital’s bottomm line.
“Even though we lose money on those patients, it’s not as much as we lose on thoser patients with no money at Holcomb says. “When TennCare rolld are cut forwhatever reason, we do see a trickls down effect in self pay which translates into little or no pay. (TennCare cuts) are always a bad thingf for The Med.” The proposed TennCare budgert includesa $172.5 million eliminatio of payments to hospitals that see a disproportionately high numberd of charity and uncompensated care patients. “That woulds be disastrous for Holcomb says. “But we play with the cardx we’re dealt.
” The Med and AmeriChoice are still sparringy over a contract to cover TennCarr patients atthe hospital. Last week the hospital askexd state officials to step in and break the stalematein negotiations. The largest proposed cut to TennCarse isa 7% decrease in ratezs paid to TennCare providers, doctorz and hospitals. This would produce a $325.7 millio n savings. “Two-thirds of doctors will always see Medicaid patients nomatter what,” Potter says.
“These are difficulg times and we just hope they can hang in ther e until some of the cutsare