While Massachusetts has adopted a program designed to cover almost all of the Commonwealth’s citizens with a pretty comprehensive health plan, Tennessee is pursuing a program that is considerably more modest in both plan design, expected enrollment, and cost.
According to the AP story published in Insurance Journal;
“The Cover Tennessee plan calls for a $150 monthly premium for basic health insurance, with the state kicking in $50. The individual would be responsible for the remainder, though businesses would be given the option of paying half.
The program would limit benefits, for example the number of nights for hospital stays, instead of requiring a high deductible to keep costs down for the insurer.” Copays will be modest for drugs and physician office visits, and individuals’ coverage will be portable.
This initiative began with a grant from the federal government (HHS in particular) to provide funding to study ways to cover the state’s uninsured. The report, a 119 page monster, provides a comprehensive and quite detailed review of the state’s population demographics, existing health insurance infrastructure,
Of note, “the largest portion of the uninsured worked more than 40 hours per week…for small businesses.” 20% of the uninsured work for employers who offer health benefits, but either can’t enroll yet, can’t afford their contribution, or are ineligible for the plan.
Unlike Massachusetts, the program will be limited to selected insurers. There will be competitive bidding, with the state soliciting bids from insurers, after which the plan will be implemented by the end of the year. My sense is this process will encourage insurers to adopt strict cost control measures.
Apr
20
It’s nice to see Tennessee get back on the horse after TennCare pretty much imploded. But it seems like the coverage they’re offering will be just enough to cover the investigation that leads to a cancer or diabetes diagnosis, but won’t cover the actual treatments. Kind of scary. In any case, it’s cool that there are so many experiments popping up throughout the country. Maybe one of them will work.
“…20% of the uninsured work for employers who offer health benefits, but either can’t enroll yet, can’t afford their contribution”
Let me get this straight…If some of the uninsured are employed and can’t afford the contribution to enroll with employer sponsored coverage – how are they going to afford $150.00/month under the Tenn. plan?
That’s $750.00/month for a family of 5 minus $50 per head from the state = $500.00/month…6 grand a year…
Am I missing something here???
So, low income families will be moving out of Tenn – to Kentucky, Atlanta, NC etc???