Tenn. Drops 323,000 Adults From Medicaid

January 11, 2005

ee_medicaid

Mon Jan 10, 6:44 PM ET U.S. National - AP

By MATT GOURAS, Associated Press Writer

NASHVILLE, Tenn. - Gov. Phil Bredesen announced Monday that he will drop

323,000 adults from the state's expanded Medicaid program to save about $1.7

billion a year, but will preserve health coverage for children.

The announcement capped weeks of negotiations between Bredesen and health

care advocates in an effort to save a Tennessee program that offers coverage to

the working poor who make too much money to qualify for regular Medicaid.

Advocates said the cuts would be devastating and pleaded with the governor to

reconsider the move.

The governor's plan ends coverage for adults who make more than the Medicaid

cutoff, but retains it for more than 100,000 children whose families fall in

that range.

" I say to you with a clear heart that I've tried everything, " the Democratic

governor said. " There is no big lump of federal money that will make the

problem go away. It is just not there. "

The governor has said court settlements that forced Tennessee to raise the

level of coverage it provided meant it could not afford to continue with the

expanded program.

Bredesen had announced in November that he intended to return to basic

Medicaid, ending coverage for all 430,000 adults and children, because of

mushrooming costs.

He agreed to negotiations with lawyers for the working poor, but said Monday

that the advocates were " living in a fairyland " and would not work to find

realistic solutions.

" I feel like I can hold my head up as we move through the unpleasant changes

we have to make, " he said.

Gordon Bonnyman, the chief legal advocate in the case against the state,

hoped the governor would change his mind.

" Cuts of that size are unprecedented and unthinkable, " he said.

" Providing health care to all Iraqis is sound policy. Providing

health care to all Americans is socialism. " -- anon

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