Lawmakers held up legislation that would create an opening for a TennCare contract to be given to a massive company connected to a bid-rigging lawsuit filed against the state.
House Bill 2625, sponsored by Rep. Charlie Baum, was placed “behind the budget” in the House Finance, Ways and Means Subcommittee on Wednesday because it would cost the state $2.8 million next fiscal year and more than $30 million in a third year, according to the fiscal impact document attached to the bill.
But while most legislation given that status dies because of the cost, this bill could be bolstered by the co-sponsorship of House Speaker Cameron Sexton, R-Crossville, who contends the change is needed to bolster “openness” in TennCare contract decisions.
Once the legislature approves a budget for fiscal 2022-23, the measure could be taken up. It was put on hold Wednesday.
Baum, a Murfreesboro Republican, told the committee Wednesday the bill is designed to study the impact of another provider and then bring in a fourth managed care organization for TennCare, the state’s Medicaid program for the poor. He also noted the bill is set up for Centene Corp., the nation’s largest managed care organization operator.
For years, the state has had only three managed care organizations, but another one is needed to increase options and competition, Baum explained.
TennCare spokeswoman Amy Lawrence on Wednesday defended the agency’s procurement process.
“As with any competitive procurement, TennCare ran a fair and open process in its most recent procurement of the managed care contracts,” she said. “The procurement is currently under an active protest, and so we have no further comment at this time.”
Rhythm Health Tennessee, which is part of Centene Corp., filed the protest, according to Lawrence.
Asked Wednesday if Vanderbilt University Medical Center is partnering with Centene, spokesman Craig Boerner said Rhythm Health Tennessee has agreements with several Tennessee providers, including a preferred agreement with Vanderbilt Health Affiliated Network, which includes more than 60 of the state’s top hospitals and more than 6,500 providers.
“By aligning VHAN with many other quality providers throughout the state of Tennessee, Rhythm Health Tennessee can provide TennCare patients with access to care in all 95 counties,” Boerner said in the statement.
At least one lawmaker questioned the legislation in a previous committee meeting, then doubled down on the statement Wednesday, pointing out the legislature would be catering to Centene after it failed to win a state contract.
Rep. Jason Hodges, D-Clarksville, also challenged the company’s record with the state because its subsidiary, Centurion of Tennessee, was tied up in a bid-rigging lawsuit in 2021. The case against the Tennessee Department of Correction was settled but dismissed with prejudice in early January 2022.
Read more at tennesseelookout.com.