Federal authorities renewed the state’s Medicaid program (today/yesterday) but with 270-million dollars less than the state requested for TennCare.

The Centers for Medicaid Services – or CMS – wanted to cut reimbursements to hospitals that care for Medicaid patients and the uninsured. The original offer would have cost the state 385-million dollars over the three-year contract. Tennessee’s finance commissioner Dave Goetz says 16-months of negotiations whittled that down to 270-million. He says Tennessee held out as long as possible because states like California, Florida and Massachusetts have received additional money in recent years for their Medicaid waiver programs.

TennCare’s cuts will delay indefinitely a final decision on whether or not to reopen the ‘medically needy’ category to new enrollees.

“One of the things this new waiver requires is to submit a plan to CMS on how we plan to reopen in the next 30 days, and we will do that.”

Goetz says reopening enrollment for 50-thousand Tennesseans who are poor only because of their health will depend on whether the state can fill the gap federal funding has left.

Senators Lamar Alexander and Bob Corker issued statements following the contract renewal, praising the deal. Both had sent letters to Health and Human Services Secretary Michael Leavitt during the process urging expedience and fairness in negotiations.

1.2-million people are enrolled in TennCare, which receives 64-percent of its funding from the federal government.