NASHVILLE, Tenn. (AP) – Tennessee has become the first state in the nation to be approved to receive funding in a lump sum for its Medicaid program through a block grant program, Gov. Bill Lee said Friday.
Republicans contend that states need more flexibility to shape their Medicaid programs while also being given the opportunity to rein in spending. Democrats, however, have expressed concern that spending caps might cause states to purge their rolls or reduce services. They instead want to widen Medicaid eligibility.
President-elect Joe Biden has opposed block-grant efforts and can rescind the change.
Addressing concerns about the block-grant model, Steve Smith, director of Tennessee’s Medicaid program, said there will be no reduction in services, in eligibility or in the amount paid to providers.
“For the first time, we have an agreement that rewards efficiency,” he said on a conference call with reporters. “This is about more, not less.”