Budget & Finance

Insurance Debate

By Joetta L. Sack — November 30, 2004 1 min read
  • Save to favorites
  • Print

Three weeks ago, Tennessee Gov. Phil Bredesen appeared ready to pull the plug on the state’s troubled TennCare health-insurance program and put the savings into prekindergarten programs.

But a few days later, he decided to give TennCare one more chance at life.

The $7.8 billion program offers managed health-care insurance to more than a million Tennesseans who otherwise wouldn’t have insurance, including young children whose families are not poor enough to qualify for Medicaid. But since its inception in 1994, TennCare has been bogged down by criticism and lawsuits.

Gov. Phil Bredesen

Gov. Bredesen, a Democrat, announced Nov. 10 that the state would return to a more traditional Medicaid program because the TennCare system had become too expensive and subject to litigation.

“It pains me to set this process in motion, but I won’t let TennCare bankrupt our state,” he said.

On Nov. 15, he told a Tennessee School Boards Association conference that he was worried that the rising costs of TennCare would hurt education programs.

“The reality is, people elected me to manage the state and to manage the budget, and I certainly can’t put at risk things like education and higher education,” Gov. Bredesen said at the conference. “There’s no higher priority to me than early-childhood education.”

But by the end of the week, he appeared to have had a change of heart. He acknowledged that by replacing TennCare with a more traditional Medicaid system, about 430,000 Tennesseans would lose their health insurance.

Calling TennCare “the most difficult problem I’ve ever tackled,” the governor, a former health-care-company executive, said on Nov. 18 that he would make one last attempt to resuscitate the program.

Stephen Smith, the director of government relations for the TSBA, said the school boards’ group was happy to hear the governor talk about more money for pre-K programs. The group has long supported a statewide pre-K program, but the state has not been able to find enough money for it.

The TSBA has also been working with state lawmakers for five years to try to get them to allow schools to tap TennCare funds for reimbursements for special education and other medically related expenses, as they do with Medicaid. The group has not taken a position on whether TennCare should be replaced.

Related Tags:

A version of this article appeared in the December 01, 2004 edition of Education Week

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
Hiring, Retention, and Fill Rates: A Data-Driven Sub Strategy
Explore what keeps substitutes coming back and hear how one district rebuilt its substitute hiring process and improved its fill rate.
Content provided by Frontline Education
Early Childhood K-12 Essentials Forum Early Childhood Education: Building Essential Skills for Success
Join this free virtual event to examine the biggest challenges in supporting young children, from preschool through elementary school. 
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Absenteeism Webinar
Attendance Isn't an Attendance Problem
Boost attendance by strengthening relationships, belonging, and support with practical strategies from Doug Fisher & Nancy Frey.
Content provided by Corwin

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Budget & Finance How to Help When Families Can't Afford School Supplies
Inflation and other economic challenges are making back-to-school shopping more costly.
4 min read
NEW YORK, NEW YORK - AUGUST 13: School supplies are displayed at a Target store on August 13, 2026 in Downtown Brooklyn in New York City. Back to school supplies are expected to cost more than 10% more for families amid a rise in inflation driving up costs.
School supplies are displayed at a Target store on August 13, 2026, in New York City. Back-to-school supplies are getting more expensive and families are struggling to pay for them, prompting educators to step in and help.
Photo by Michael M. Santiago/Getty Images
Budget & Finance Rising Healthcare Costs Force School District Budget Tradeoffs
The growing cost of such a large expense in school district budgets requires tradeoffs, a new survey shows.
4 min read
People stand at the counter of a pharmacy in the Queens borough of New York City, on Nov. 18, 2025. President Trump has made certain drug prices drop and has made deals with pharmaceutical companies to continue to keep prices down.
People stand at the counter of a pharmacy in the Queens borough of New York City, on Nov. 18, 2025. School district leaders in a new survey identified rising prescription drug costs as one leading cause for rising health insurance premiums that are straining district budgets.
Anthony Behar/Sipa via AP
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Budget & Finance Whitepaper
Scaling Professional Learning Without Breaking the Budget
This guide shows how book-based PD builds shared instructional language without costly consultants. Includes a year-long roadmap, funding...
Content provided by BulkBookstore
Budget & Finance 4 Ways States Could Reduce Property Taxes—And What It Means for Schools
Budgets beware: States are eyeing property-tax caps, exemptions, or eliminating them altogether.
3 min read
Image of desks with money symbolism overlayed on the desktops and seats.
Laura Baker/Education Week & Getty