On March 27, 2006 Tennessee Governor Phil Bredesen (D) presented a new coverage proposal to the state legislature to address health care access and cost issues in the state. The proposed legislation includes several components:
Cover Kids: This program is a State Children’s Insurance Program (SCHIP) that will cover children and pregnant women up to 250 percent of the federal poverty level (FPL) who do not qualify for the TennCare program. It also allows those above the 250 percent FPL limit to buy into the program.
Access Tennessee: This program is a high risk pool that is available to those individuals who cannot purchase health insurance due to medical conditions. Program premiums are capped between 150 percent and 200 percent of standard commercial market rates. Premium subsidies may be available for low income individuals in the pool.
Cover Tennessee: This program aims to provide an affordable plan targeted for uninsured low-income workers – those with incomes less than 250 percent FPL – and small businesses with low-wage workers that have not offered coverage in the past. The intent is to develop a private insurance product that would cost no more than approximately $150 per month on average. Following the idea of the three-share model, the state would subsidize $50 of premium and the rest would be paid by the employer and employee. One of the cornerstone elements of this program is that the coverage would be portable; that is, the individual maintains the coverage regardless of change of employers.
Other Programs: The bill also includes an expansion of Tennessee’s safety net program for affordable prescription drugs for low-income adults and the Project Diabetes program, a school-based initiative that focuses on helping children and teens improve their exercise and eating habits. The project also will fund two pilots to evaluate improvements in diabetes outcomes through coordinated care.
