Economy

Tom Jachman

Atlanta, GA

53

comments

Health Care Lessons Learned From TennCare

October 26, 2009 - 12:46 PM | by: Tom Jachman

In the National Debate over health care Reform and a Public Insurance Option, many critics are looking at Tennessee.  The Volunteer State passed a health care reform experiment of their own in 1994.  It’s called TennCare and it set out to insure the uninsured by expanding Medicare to cover people who can’t afford private insurance.

The plan succeeded in some ways.  The number of uninsured in Tennessee dramatically dropped and the number of people seeking basic care in Emergency Rooms plummeted.

But it wasn’t long before TennCare nearly bankrupted the state as the public health rolls ballooned along with government costs.  By 2005, almost a third of the state budget was being spent on public health.  Out of pocket payments for members were reduced, but doctors and hospitals shifted costs to privately insured customers.

We traveled to Nashville to talk to Vanderbilt University Professor Jim Blumstein and caught up with Tennessee Congressman Phil Roe in Washington, DC.  Blumstein helped Tennessee Governor Phil Bredesen dramatically cut costs by revamping TennCare, while Rep. Roe gave us his perspective as a politician representing Tennessee and a physician who had to run his Johnson City practice under the TennCare system.

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David

As an ER nurse working at one of the busiest hospitals (Emergency Rooms) in Tennessee, I can tell you that ER visits did not go down with Tenncare, they went up. People did not go to thier private doctor for simple things (most probably didn't have a PCP).They came to the ER because the cost of the ER didn't matter. They just charged it to TennCare. The same will happen nationally. Just giving people access to insurance doesn't put more physicians on the front lines to take them all in. They will resort to what they have always done...go to the ER. This little article doesn't mention the abuse of the system by people getting prescriptions drugs through TennCare and then selling it on the streets. What a mess TennCare was, is, always will be. It does help a few in need, but a majority just use it as another free handout and abuse it.

October 27, 2009 at 12:00 PM
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Lynn W

I moved to Tennessee 5 years ago, and NEVER haveI seen so many people who either refuse to work, too lazy or depend on Tenncare to care for them. Their attitude is "The stste will take care of me"I even know a woman who wants to get pregnant so the state will send her a check for the baby.....

October 27, 2009 at 11:38 AM
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sheryl

It is my understanding that TennCare's downfall began by some that found loopholes in the system. I feel that there are those that are legitimate and those that take advantage. If the government could make everyone take random drug/alcohol tests, this could prevent those from taking advantage of the system. My adult daughter was on TennCare. She is lazy and uses her alcohol/drug problems, that she claims caused her a disability of sorts, to acquire insurance through TennCare and also acquire food stamps. She claimed that she was told how to get around the system in order to qualify. She doesn't even have custody of her children, yet still qualifies. If she was able to fool the system, don't you know that many, many more were able to do so as well. And who pays for them to use government dollars? Those responsible adults who work hard for a living. I don't mind helping out and giving to help needy people, but I don't want to lift a finger or give $1 to help those that won't help themselves. Government run health insurance will be no different than TennCare, it will be much worse. Not only will we be helping the drugees or alcoholics, but will also have to assist in helping illegal aliens as well. I'm totally against government run health insurance, especially since this administration is handling it all so secretly. They are writing these bills behind closed doors. They also said that this administration would not be bipartisan and in truth, they are doing just the opposite. I hope that our elected officials see the many loopholes and vote against the health care bill.

October 27, 2009 at 11:05 AM
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steve

Washington should take a close look at what happened to Tennessee before doing this to the entire U.S. this will be a chaotic situation, it will bankrupt the U.S. without a doubt.

October 27, 2009 at 11:03 AM
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Mike

Maybe Congress should visit Tennessee

October 27, 2009 at 10:57 AM
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RSC

By all accounts, it seems as if TennCare has been quite successful. The article mentions that in 2005, Healthcare was almost 1/3 of the budget (30%), but fails to mention that in 1993, prior to the start of TennCare, healthcare was already 26% of the state budget. So, it only rose 4% points during a time when health care costs across the country more than doubled. As a matter of fact, in comparison to bordering southern states, Tennessee is spending almost $500 million LESS to ensure 600,000 MORE people. BTW, Tennessee has no earned income state income taxes (only dividend and interest income is taxed, not earned income). So, this was accomplished with NO TAX INCREASES!! This looks like it might be a great plan to emulate.

October 27, 2009 at 10:37 AM
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Edwin Tabales

Just a silly thought, when has the mainstream media mention this to the American people. And how are the Tennessee reps and senate members going to vote on healthcare? Do the peopel there know?

October 27, 2009 at 10:26 AM
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Lance

I worked in the mental health field in Tennessee for around 8 years. TennCare totally changed how we could help our clients, including alcohol and drug rehab for adolescents. In our day treatment program, they set unreasonable limits to get these kids help. I can't wait until the federal government limits cancer treatments to one session.

October 27, 2009 at 10:13 AM
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N. Griffin

TnCare allows people who have insurance coverage thru their work to also have coverage under TnCare. Why? I have talked to workers at TnCare this pratice is allowed. Why? The TnCare worker could not explain.

October 27, 2009 at 10:12 AM
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notmd

Since 2005 Hospitals have become the payer of last resort..it is called charity care..effectively patients do not need buy insurance or enroll in a public plan ,they can go to the emergency room and receive free care. In the long term this is poor care and costs more as these patients don't see their primary physician. As was stated in the newscast, one of the reasons patients were disenrolled because the program was poorly managed. we need to mandate universal coverage and provide the same level of management expertise in running the program.

October 27, 2009 at 10:07 AM
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Joanne in Knoxville

I live in Tennessee and the TennCare system is deeply flawed. In trying to provide health care coverage for the uninsured, the state has been nearly bankrupted. Tennessee will suffer greatly with the 2010 budget cuts but the 2011 budget will tell the tell without the federal stimulas dollars. Any recovery will be slowed or ground to a halt with the current Health Care Bill. Look back on this in 5 years and see who's right!

October 27, 2009 at 10:05 AM
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Anthony R.

Tenn Care is great! I've known countless mothers who's babies were covered under this program when there was no one there to help these un-wed mothers.

October 27, 2009 at 10:01 AM
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JRC

It seems to me that serious tort reform would do more to lower health care costs than the huge boondoggle proposed by the Democrats. It would lower malpractice premiums and lower costs of largely unnecessary tests ordered by doctors practicing defensive medicine. The million dollar fees charged by trial lawyers in health care related cases would largely go away. This would cost the public nothing! Oh I forgot, Congress is made up of mostly lawyers who would rather ruin one of the best health care systems in the world and saddle you with incredible debt as opposed to suggesting their brethren at the Bar earn an honest living for a change.

October 27, 2009 at 9:39 AM
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Stephanie

Yes this will happen if obama care is approved throughout the country....That is his plan to implement socialized medicine. You people can't see the writing on the wall? If the Government fixes everyones problems for them and there is no inclination to work and provide for their families the good old fashioned way we will have a nation of weak minded easily herded in their preplanned direction. Socialism...public control.....need I keep going?

October 27, 2009 at 9:38 AM
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Jan

What would make American's healthier? Less healthcare. People would begin to take their own health into their hands and live more responsibly, instead of relying on meds and doctors.

October 27, 2009 at 9:37 AM
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clarence musolf

I'm sure the system is needed by many but living here in Tn , I have seen too many take advantage of the system only to get drugs to sell to friends .. mean while the insured honest working people once again pay the bill for all ..

October 27, 2009 at 9:37 AM
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james dale

As a Tennessee resident, I lived through the TennCare debacle. As a citizen of the US, I can't WAIT to see them mess Washington will make of Obamacare. I'm older now...I hope I can live through this one.

October 27, 2009 at 9:21 AM
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Jacob

Don't let the U.S. congress bankrupt the country the way the demacrat controlled Tennessee legislature almost succeeded in doing in Tennessee when they passed a public option. TennCare has been a nightmare and continues to drain tax dollars. It has become a huge black hole sucking our hard earned money into it. Every single Tennessee citizen's economic well being has been negatively affected in some way by our public option.

October 27, 2009 at 8:58 AM
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John Allen

We lived in TN for over nine years before relocating our business to KS. TennCare is a good example of why governments with their central planning can't work. We saw how people abused the public handout that had no method of making the vast majority of recipients responsible for their own failures.

October 27, 2009 at 8:55 AM
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Barbara Barfield

I live in TN. You state, "It’s called TennCare and it set out to insure the uninsured by expanding Medicare to cover people who can’t afford private insurance." This program actually expanded Medicaid.

October 27, 2009 at 8:53 AM
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