TennCare could take big hit, By Chas Sisk, August 31, 2011, The Tennessean: “Health care, children’s services and unemployment offices could bear the brunt of expected cuts in federal spending in Tennessee, according to planning documents released Tuesday. Spending on TennCare could be reduced by as much as 25 percent, and local health departments could lose as many as 278 jobs across Tennessee under a worst-case scenario prepared for state finance officials. Tennessee also may have to close as many 36 career centers, and reduce staffing for child welfare by nearly 700 people, if the federal government presses ahead with deep cuts to Tennessee. The planning documents give some insight into how sharp reductions in federal spending might affect Tennessee. About 40 percent of the state’s $30 billion budget comes from the federal government, which intends to reduce its spending by at least $1.2 trillion in a bid to reduce the national debt…”
Colorado scaling back Medicaid after drastically underestimating numbers, cost, By Tim Hoover, August 31, 2011, Denver Post: “Two years after lawmakers expanded Medicaid to cover poor adults without children, the state is vastly scaling back the program because the number of people eligible for coverage is nearly three times as high as first projected and the cost of insuring them is almost nine times original estimates. The new coverage followed the 2009 passage of major health care legislation that allowed the state to impose a fee on hospitals while drawing down matching federal money to expand Medi caid coverage. House Bill 1293 was estimated to generate about $1.2 billion for Medicaid programs when fully phased in, and the measure called for expanding eligibility levels. A new eligibility class was created for adults without dependent children and whose income was up to 100 percent of the federal poverty level, or $10,890 per year for an individual…”