TennCare Provides Model for Medicaid Programming
The Tennessean recently detailed some of the financial successes of TennCare, the State of Tennessee’s Medicaid Program. The program provides comprehensive health insurance coverage for more than 1.2 million residents. More than half of those with coverage form TennCare are children.
Equally as impressive, the state run program has managed to contain costs. TennCare costs in 2005 were $8.5 billion. Those significantly decreased during 2007, capping at $7 billion. The ability to contain costs even light of inflation is all the more impressive
The TennCare program minimized the increase in annual costs to three percent each year during the past two years, controlling costs and managing resources effectively. Last year, 2006, was the lowest rate of inflation in the history of the TennCare program. In comparison, Medicaid programs in other states are growing annually at rates well into the double digits.
Financial gains associated with the updated pharmacy program are particularly relevant. Components of the program include prior authorization, use of generic drugs, consolidation of benefits to a single vendor, limits on drug therapy, and review of drug utilization. These facets, among others, are associated with savings of 1.2 billion from the pharmacy program alone, in addition to improving patient safety.
Other new initiatives include efforts to improve compliance with preventive care, engage patients with their own health, and empower patients with provision of resources needed for medical decision making. These improvements aren’t just providing coverage for residents, but have provided positive impact for the state’s overall fiscal health.
October 30, 2007 Related topics: Finance, General Management & Administration, Trends