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Tenn. hospitals to underwrite Gov. Haslam’s Medicaid expansion

tn.gov

MURFREESBORO, Tenn. (WMOT)  A few new details are emerging today concerning the Medicaid expansion deal Gov. Haslam says he’s struck with the Obama Administration.

In announcing the deal yesterday, Haslam stressed that his plan ensures Tennesseans will not face higher taxes to pay for the expanded health coverage.

State Rep. and GOP Caucus Chairman Glenn Casada tells WMOT that the plan calls for Tennessee’s hospitals to pay the difference between what the expanded coverage costs and what the federal government will pay for.

“Our number one concern was the cost and the burden to taxpayers. The governor feels like he has solved that.”

The deal apparently expands on an existing arrangement state government has with Tennessee hospitals, whereby the hospitals pay millions in higher taxes, allowing the state to pull down billions in additional federal dollars.

Casada says GOP legislators are willing to give the plan a hearing, but are deeply concerned about the expansion of entitlements and debt.

“For every dollar we pull from the feds, 40 cents is borrowed and we’re on the path to bankruptcy, so their points are valid.”

This past year the GOP super majority in the Tennessee Legislature passed a law requiring Gov. Haslam to get their approval for any deal expanding Medicaid.

Here is an explanation of Insure Tennesseeprovided by the state.