State to Intervene in Federal Lawsuit Challenging TennCare Block Grant

The lawsuit seeks to stop innovative and improved services for Tennesseans

Attorney General Herbert H. Slatery III has filed a motion to intervene in a lawsuit designed to challenge Tennessee’s Medicaid Block Grant waiver amendment.

The Block Grant is the result of more than a year of discussions and negotiations with the federal government, input experts, providers, and stakeholders, and extensive planning by TennCare Officials.

TennCare submitted the Block Grant request to the U.S. Department of Health and Human Services in November 2019 in accordance with legislation adopted by the General Assembly. The request was approved in January 2021.

On April 22, the Tennessee Justice Center filed a complaint against the U.S. Department of Health and Human Services, in Washington, D.C., seeking to undo its approval and stop TennCare from implementing the approved changes and services provided by the Block Grant.

“The corporate plaintiffs behind this lawsuit, who consistently sue the State, are trying to stop a significant and beneficial policy reform for our state with a federal lawsuit filed in D.C.,” said General Slatery. “Our office is intervening to make sure Tennessee’s unique healthcare infrastructure is appropriately defended.”

In the filing, the State says the “Block Grant” waiver afforded TennCare the opportunity to fundamentally change an outdated Medicaid financing system by incentivizing value, quality and efficiency without compromising services or care to TennCare members.

To read the motion, click here: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/pr/2021/pr21-20-motion-answer.pdf