DECEMBER 19, 2006
615.741.3763 (OFFICE)
615.289.9375 (CELL)
BREDESEN ANNOUNCES HEALTH PLANS FOR COVERTN
PARTNERSHIP PROGRAM CREATES HEALTH INSURANCE ACCESS FOR WORKING UNINSURED
Of the five original proposals, the contracts were awarded to Blue Cross Blue Shield Plan B and Blue Cross Blue Shield Plan A. These plans received the two highest scores in a blind competitive bid process. Each plan offers low-cost health insurance to cover basic health services, with an emphasis on primary and preventative care.
“I am very pleased with the results here. These plans offer real value to working Tennesseans who lack access to health insurance,” said Governor Phil Bredesen. “We bid this out in the private marketplace and allowed competition, creativity and market knowledge to design the benefit packages – and it worked beyond our expectations.”
The state issued a list of required covered services and maximum co-payments to be included in CoverTN and challenged the insurance industry to design specific benefit packages. The state included strong prequalification requirements to allow only established companies with financial strength and management experience to participate. Having separate contracts ensures a competitive environment that will drive creativity and market knowledge to benefit participants and the state. Five proposals were received from four companies: BlueCross BlueShield of Tennessee, United Healthcare, Aetna and Cigna.
Unlike other low-cost health insurance programs, CoverTN will not charge a high front end deductible. Instead, there are no deductibles and co-payments are capped to ensure immediate access to covered services. The program will cost individuals between $34 and $99 per month. Premiums will vary depending on age, tobacco use and obesity and will be shared between the individual, the small employer and the state.
“We were extremely pleased with the response we received from the insurance industry, and their willingness to assume a financial stake in this effort,” said Finance & Administration Commissioner Dave Goetz, whose department evaluated the proposals. “Their endorsement confirms our effort toward a sensible market-driven approach to provide affordable options to those who cannot afford to buy insurance today.”
Governor Bredesen outlined a voluntary, multi-pronged effort, called Cover Tennessee, in March of this year that will extend health insurance to uninsured individuals in Tennessee, with CoverTN as the centerpiece of the initiative. Comprehensive coverage for children will be provided through CoverKids, and chronically ill adults will be covered through AccessTN, a high-risk pool. The Cover Tennessee effort includes a series of initiatives that target the growing prevalence of diabetes through ProjectDiabetes and focuses on improved lifestyle choices through GetFitTN. The General Assembly overwhelmingly approved the Cover Tennessee programs this summer.
The state expects to sign a three-year contract with each company by January 15, 2007, with enrollment to begin early next year. For more information about CoverTN or any of the Cover Tennessee programs, visit www.covertn.gov.
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