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<classification authority="sudocs">GA 1.13:HEHS-95-186</classification>
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 <subject>Medicaid programs</subject>
 <subject>State-administered programs</subject>
 <subject>Financial management</subject>
 <subject>Waivers</subject>
 <subject>Health care cost control</subject>
 <subject>Health maintenance organizations</subject>
 <subject>Medical services rates</subject>
 <subject>Disadvantaged persons</subject>
 <subject>Federal/state relations</subject>
 <subject>Health resources utilization</subject>
 <identifier>Tennessee</identifier>
 <identifier>TennCare</identifier>
 <identifier>Tennessee Children&apos;s Plan</identifier>
 <identifier>Medicaid Disproportionate Share Program</identifier>
 <identifier>Tennessee Primary Care Provider Fund</identifier>
 <identifier>Tennessee Comprehensive Health Insurance Program</identifier>
 <type>Letter Report</type>
 <seriesAbbrev>HEHS</seriesAbbrev>
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<titleInfo>
 <title>Medicaid: Tennessee&apos;s Program Broadens Coverage But Faces Uncertain Future</title>
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<abstract>Pursuant to a congressional request, GAO reviewed Tennessee&apos;s Medicaid
capitated managed care program (TennCare), focusing on: (1) TennCare&apos;s
basic design and objectives; (2) the degree to which the program is
meeting these objectives; and (3) the experiences of TennCare insurers
and medical providers and their implications for TennCare&apos;s future.&lt;p/&gt;GAO found that: (1) TennCare&apos;s objectives are to expand health care
coverage to the state&apos;s uninsured and to control program costs by
mandating that Medicaid participants enroll in managed care
organizations (MCO) and covering certain uninsured, Medicaid-ineligible
persons; (2) Tennessee has cut costs by setting its capitation rates
below historical Medicaid costs, applying an additional discount based
on the assumption that extensive insurance coverage would reduce charity
care costs, and discontinuing certain supplemental payments; (3) in
granting the Medicaid waiver, the Health Care Financing Administration
has required Tennessee to implement measures to monitor and ensure
access to quality care and has limited federal payments over the
program&apos;s 5 years to ensure that federal costs do not exceed what they
would have been without the waiver; (4) despite the increased number of
participants, federal and state TennCare expenditures have increased
much less than the national average for Medicaid programs and program
costs have actually declined when uncapitated administrative and
long-term care costs are excluded; (5) access to and quality of care
could not be measured because Tennessee and MCO have not yet set up
their monitoring systems, but a survey of beneficiaries revealed
significant dissatisfaction with the new program because of the limited
choice of doctors and difficulty in finding providers; (6) many MCO and
providers lost money in 1994 despite receiving supplemental payments
from TennCare; and (7) although TennCare has met its initial objectives,
its long-term success is uncertain.</abstract>
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<identifier type="preferred citation">GAO/HEHS-95-186</identifier>
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<note>Letter Report</note>
<extension>
 <searchTitle>GAO/HEHS-95-186; Medicaid: Tennessee&apos;s Program Broadens Coverage But Faces Uncertain Future;
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<subject>
 <topic>Medicaid programs</topic>
 <topic>State-administered programs</topic>
 <topic>Financial management</topic>
 <topic>Waivers</topic>
 <topic>Health care cost control</topic>
 <topic>Health maintenance organizations</topic>
 <topic>Medical services rates</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Federal/state relations</topic>
 <topic>Health resources utilization</topic>
 <topic>Tennessee</topic>
 <topic>TennCare</topic>
 <topic>Tennessee Children&apos;s Plan</topic>
 <topic>Medicaid Disproportionate Share Program</topic>
 <topic>Tennessee Primary Care Provider Fund</topic>
 <topic>Tennessee Comprehensive Health Insurance Program</topic>
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