TennCare seeks $975M in additional funding tied to medical costs, price of new obesity drugs

Officials say Tennessee’s Medicaid program is on sound financial footing; a court ruling may require TennCare to reinstate tens of thousands of people

November 18, 2024

TennCare – the state Medicaid program that pays the medical bills of 1.4 million low-income Tennesseans – is seeking a $975 million budget boost next year driven in large part by rising medical costs,

The two biggest drivers of the expected costs are an estimated $165 million in price hikes for medical care and $41 million tied to the high price tag of new classes of drugs used to treat obesity, heart disease and diabetes – drugs such as Ozempic.

This year’s budget request follows steep cuts in TennCare enrollment: 300,000 people lost coverage last year in an error-ridden process that violated the rights of thousands of Tennesseans and ran afoul of the Constitution, Medicaid law and protections for people with disabilities, a federal judge ruled in August.

https://tennesseelookout.com/2024/11/18/tenncare-seeks-975m-in-additional-funding-tied-to-medical-costs-price-of-new-obesity-drugs/