The state released detailed plans recently for how it would deal with potential cuts in federal funding of up to 30% that , if fully implemented, would slash 5,132 employees and $4.5 billion out of the state’s $31 billion budget.
TennCare, the federal and state health insurance program for low-income and disabled people, would bear the brunt at just over $2.25 billion. If fully implemented, the program would reduce reimbursement rates to health providers, eliminate optional benefits and reduce other services — including medicine and dental — to recipients.
2012-2013 Federal Revenue Loss Contingency Plan Detail (excerpt)
Possible TennCare Cuts
Total Tier 1 - 15% Federal Revenue Loss of $1,107,814,000
Total Tier 2 – Additional 15% Federal Revenue Loss of $ 1,145,873,900
Federal Revenue Loss Contingency Plan – Outlines cuts by department and programs
*Information provided by Tennessee Mental Health Consumers’ Association.