Bredesen ready to launch CoverTN on Thursday

Daily News Journal
March 8, 2007

NASHVILLE (AP) — Tennessee was slated to launch its state-subsidized health insurance plan for low-income working adults on Thursday.

Workers employed by participating small businesses — those with no more than 25 workers, at least half of whom earn less than $41,000 per year — are eligible for the CoverTN program.

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The plan calls for the state, workers and participating employers to each pay one-third of the average monthly premium of $150.

“It’s a starting point for employers and employees who are otherwise priced out of the market” said Gov. Phil Bredesen.

More than 3,000 small businesses have pre-qualified for the program, but officials were uncertain how many workers will sign up once the rolls are open.

Bredesen, a former health care executive, has acknowledged that the program won’t immediately be flawless.

“It’s probably not perfect, but let’s get it out, let’s get some experience, and let’s get it working,” he said.

Bredesen likened the health care proposal to a new software program.

“You need to get version 1.0 out the door and working before you start trying to design version 5.0,” he said. “And then we can have a much more intelligent discussion about what version 2.0 will look like this time next year.”

CoverTN is one element of Bredesen’s Cover Tennessee plan that includes programs to cover children and people with pre-existing medical conditions. It also offers CoverRx, a prescription-drug plan for the uninsured or people who have insurance that doesn’t cover drugs.

Bredesen in 2005 cut 170,000 adults from TennCare, citing years of escalating costs and mismanagement at the program. The expanded state-federal Medicaid program now provides health coverage to about 1.2 million, mostly low-income pregnant women, children and disabled people.

The state has reserved $34 million to pay for the CoverTN plan for each of the first two years, and $57 million for the year after that.

While the Legislature passed the CoverTN legislation with a comfortable margin last year, some Republicans have expressed skepticism about how much the plan will help low-income Tennesseans.

“It just remains to be seen whether any of it makes a difference,” said Senate Majority Leader Mark Norris said. “It’s a nice gesture and could be a step in the right direction.”

“But it remains to be seen,” said Norris, R-Collierville. “Wish us luck.”

Bredesen said the motivation for creating the plan was to “get something together for the people who are working at the Waffle House or something like that and don’t have insurance.”