Tennessee

Tennessee’s Money Follows the Person (MFP) demonstration, implemented within the context of Tennessee’s pre-existing capitated Medicaid managed care delivery system, is an integral component of the state’s Medicaid long-term services and supports rebalancing efforts. This case study describes key features of Tennessee’s MFP demonstration and highlights recent program experiences.

This state report explains how the ACA expands coverage in Tennessee, including a breakdown of how many uninsured people are eligible for Medicaid, how many are eligible for financial assistance to help them buy private insurance in the new Marketplace and how many will not receive any financial assistance at all. The report also details, in specific dollar figures, the income levels at which people in Tennessee are eligible for Medicaid or financial assistance in the Marketplace. For states not expanding Medicaid, the report quantifies how many uninsured people fall into the “coverage gap,” meaning they will be ineligible for financial assistance in the Marketplace or for Medicaid in their state despite having an income below the federal poverty level.

TennCare represents one of the most ambitious state-level efforts to restructure Medicaid and expand insurance coverage to the uninsured. The case study shows that the rapid change caused considerable confusion for patients, providers, and health plans. The TennCare experience provides early insights into the issues that states will face as they move to enroll more of their low-income populations into managed care arrangements.