CMS Approves Tennessee Medicaid Block Grant Demonstration With A Retroactive Start Date of January, 2021

On January 8, 2021, the federal Centers for Medicare & Medicaid Services (CMS) approved Tennessee’s Medicaid 1115 waiver for TennCare III, which will allow the state to continue its Medicaid managed care program as a block grant. TennCare III is authorized statewide beginning January 8, 2021, and runs through December 31, 2030.

Under this arrangement, the federal share of Tennessee’s spending on Medicaid will be capped. The state is working with CMS to establish a fixed spending target based on well-established, historical enrollment and Medicaid cost data for 2019. The base block grant amount is approximately $8 . . .