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

Reading & Literacy K-12 Essentials Forum Supporting Struggling Readers in Middle and High School
Join this free virtual event to learn more about policy, data, research, and experiences around supporting older students who struggle to read.
School & District Management Webinar Squeeze More Learning Time Out of the School Day
Learn how to increase learning time for your students by identifying and minimizing classroom disruptions.
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
Reading & Literacy Webinar
Improve Reading Comprehension: Three Tools for Working Memory Challenges
Discover three working memory workarounds to help your students improve reading comprehension and empower them on their reading journey.
Content provided by Solution Tree

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 Reports Sharing Solutions: K-12 Administrators Weigh in on Strategic Resourcing
Based on a 2025 study, this whitepaper provides a roadmap for districts as they navigate purchasing processes amid economic uncertainty.
Budget & Finance What the Research Says Is Spending on Professional Development Keeping Pace?
A new tool helps leaders map and compare spending for teacher learning.
3 min read
Educators participate in a hands-on breakout session during a professional development training on AI at Louisa County High School in Mineral, Va., on Sept. 23, 2025.
Educators participate in a hands-on breakout session during a professional development training on AI at Louisa County High School in Mineral, Va., on Sept. 23, 2025. Changing instructional practices haven't prompted districts to put more of their overall budget into ongoing teacher training, a new report concludes.
Kirsten Luce for Education Week
Budget & Finance Quiz Many District Leaders Fail to Think Strategically About Spending. What Gets in Their Way?
School districts face enormous pressure to make smart decisions when they’re buying academic resources.
1 min read
Image of school supplies falling into a shopping cart.
Antonio Solano/iStock
Budget & Finance School Districts Prepare to Go Without Some Federal Funds Next Year
Some school finance chiefs are preparing for worst-case scenarios as federal funding uncertainty persists.
7 min read
Illustration in blue of huge hands holding money as silhouette people run towards it.
iStock/Getty