TennCare officials are eyeing what providers call “devastating” cuts to benefits that include rehab services and inpatient hospital care, all in an effort to meet state-mandated budget reductions.
“These are painful decisions that are having to be made,” said Kelly Gunderson, spokeswoman for TennCare, the state’s Medicaid program. “In normal circumstances, these are (benefits) we would not be touching.”
The TennCare Bureau is seeking approval from the U.S. Centers for Medicare and Medicaid Services for the cuts, which would save the state $117 million in the fiscal year that begins July 1.
Declining revenues forced state-mandated cuts for all agencies, state officials said. The budget restrictions, paired with a 4.5 percent increase in TennCare enrollment, mean that bureau officials are seeking to trim $350 million from next year’s budgeted expenditures, Ms. Gunderson said.
The proposed changes, most of which would not affect pregnant women and children, include a $10,000 annual cap on inpatient hospital and psychiatric hospital services; elimination of physical therapy, occupational therapy and speech therapy coverage; elimination of hospice care; and an annual limit of eight doctor’s office and nonemergency hospital visits.