Tennessee unveils proposal for Medicaid block grant

The state of Tennessee yesterday released for public comment a proposal to convert the bulk of federal funding for its Medicaid program to a block grant. The state plans to ask the Centers for Medicare & Medicaid Services for a waiver to implement the proposal, which would cover core medical services delivered to TennCare’s core population. It would continue to finance certain expenses through the current Medicaid financing model, including services carved out of the existing TennCare demonstration, outpatient prescription drugs, uncompensated care payments to hospitals, services provided to Medicare enrollees and administrative expenses. The proposal includes a per capita adjustment if future enrollment grows beyond the base period.