State must uncover answers for moneypit called TennCare
A report on problems with TennCare — the state’s $7.1 billion health care program for 1.3 million poor Tennesseans — shows Gov. Phil Bredesen and state lawmakers have their work cut out for them.
The first half of a privately funded study carried out by McKinsey & Co. found that TennCare accounts for approximately 25 percent of the state’s budget — 5 percent more than the average in most other states. More disturbingly, McKinsey forecasts that unless the program is fundamentally changed, it will all but devour every nickel of new revenue in the state’s budget and then some.
Prescription costs alone, McKinsey says, will likely increase $2.6 billion in the next four years, representing roughly 60 percent of the health care behemoth’s overall expense.
The second half of the report, which will offer a series of options to cut costs, is expected in January.
The problems identified in the study are structural and therefore call for major surgery, not a nip here and a tuck there. The crucial question is whether the collective political leadership of the state is prepared to take some big risks. It is relatively easy for politicians of all stripes to focus on those individuals and groups who can return the favor. But what about those who can’t?
After a decade of ideological clashes over the TennCare program, it’s time for a political truce. The McKinsey report appears to be an objective and useful critique of the program’s successes and problems. After so much political strife, such information can form the basis for some common ground and some commonsense solutions, which are sorely needed.