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Ragan supports TennCare shared savings

State Rep. John Ragan, R-Oak Ridge, announced Tennessee House Republicans joined the Senate Chamber of the General Assembly to pass HJR0018, a resolution approving the waiver for Tennessee’s shared savings proposal from the Center for Medicare and Medicaid Services.

Ragan made the announcement via a press release issued Friday, Jan. 15.

The waiver amendment is the first of its kind in the nation. The proposal rewards Tennessee for its efficient fiscal management and gives the state the ability to better administer TennCare from within Tennessee.

The shared savings plan will allow Tennessee to keep a share of underutilized federal funds to be reinvested in health-related services for TennCare enrollees. These enhanced programs include prioritizing maternal health, serving additional needy populations, eliminating the wait list for intellectual and developmental disability services, and addressing other state-specific public health crises.

This proposal gives Tennessee more control over TennCare, ensuring a higher quality of care and more-efficient services for the approximate 1.4 million Tennesseans enrolled in the program. With the shared savings, TennCare will have the flexibility to add new populations and benefits without federal approval, adequately address fraud, more-effectively manage the pharmacy program, and invest in health rather than simply health care.

“Tennessee has one of the top Medicaid programs in the country,” Ragan said. “This plan allows us to continue to provide exceptional care to our TennCare recipients in a more fiscally responsible way.”

The process to approve the proposed waiver began in 2019, when the Tennessee General Assembly passed HB1280 directing the governor to submit the waiver amendment and negotiate with CMS. The agreement will be implemented by TennCare upon approval.