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

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
Recruitment & Retention Webinar EdRecruiter 2026 Survey Results: How School Districts are Finding and Keeping Talent
Discover the latest K-12 hiring trends from EdWeek’s nationwide survey of job seekers and district HR professionals.

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 Why Some Districts Are Shifting Teens From School Buses to Public Transit
Cost, safety, and existing infrastructure are factors in determining whether a partnership with a local transit agency could save money.
4 min read
Students wait to board Metro, Cincinnati’s public bus system, to ride to their second day of school on Thursday, Aug. 21, 2025 in Cincinnati, Ohio.
Students wait to board Metro, Cincinnati’s public bus system, to ride to their second day of school on Thursday, Aug. 21, 2025, in Cincinnati, Ohio. There are many factors school districts must consider before switching to public transit.
Luke Sharrett for Education Week<br/>
Budget & Finance 5 Tips for Teachers to Save on Classroom Supplies This Year
Utilizing teacher discounts, reusing items, and using social apps like Facebook and Nextdoor can help save money this shopping season.
5 min read
People seen shopping for schools supplies at a Staples retail store days before the start of the new school year, New York, NY, September 2, 2024.
People shop for school supplies at a Staples store days before the start of the new school year in New York, on Sept. 2, 2024. Teachers across the country are facing rising classroom supply costs and uncertainty as looming tariffs and delayed federal funding force many to get creative and thrifty about how they prepare for the school year.
Anthony Behar/AP
Budget & Finance Teacher PD, Jobs on the Chopping Block as Trump's Funding Freeze Continues
In a new survey, superintendents detail the tradeoffs they expect to make if billions in federal funds don't arrive.
Instructional coach Kristi Tucker posts notes to the board during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025.
Instructional coach Kristi Tucker posts notes during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025. Professional development is one area many districts say they'll cut if the Trump administration continues to withhold billions of dollars in federal school funds.
Bryant Kirk White for Education Week
Budget & Finance How This District Headed Off Misinformation About Its School Bond Campaign
School bonds are hot-button issues for districts—and ripe for misinformation campaigns.
5 min read
Image of a leader replacing FA"KE" with FA"CT"
Diki Prayogo/iStock/Getty