Tennessee is 1st to be approved for Medicaid block grant

Tennessee is 1st to be approved for Medicaid block grant
Medicaid (Source: MGN)

NASHVILLE, Tenn. (AP) — Gov. Bill Lee says Tennessee has become the first state in the nation to be approved to receive funding in a lump sum for its Medicaid program through a block grant program.

Republicans contend that states need more flexibility to shape their Medicaid programs while also being given the opportunity to rein in spending. Democrats, however, have warned that spending caps might cause states to purge their rolls or reduce services.

Democrats instead want to widen Medicaid eligibility.

President-elect Joe Biden can rescind the change, but the director of Tennessee’s Medicaid program said there will be no reduction in services, in eligibility or in the amount paid to providers.

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