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"Today, we are strengthening a program that has made a tremendous difference in the lives of hundreds of thousands of Tennesseans," Secretary Thompson said. "Under the new program, the state will not only continue to cover the most vulnerable residents of the state, but also will help some employers pay for health care insurance for their workers."

The TennCare II waiver demonstration will offer four distinct benefit packages:

• TennCare Medicaid which will be provided to all entitled residents of the state;
• TennCare Standard which is similar to commercial health plans and will be available to uninsurable residents and individuals up to 200 percent of the federal poverty limit;
• TennCare Assist in which the state will subsidize health insurance premiums for working residents and their families; and
• A pharmacy-only program for low-income Medicare beneficiaries who are not entitled to Medicaid for those who were enrolled at the end of 2001.

About 1 million Tennessee residents will continue to receive their Medicaid services through the TennCare Medicaid program, and it is expected that nearly 400,000 will be able to purchase health care benefits under the TennCare Standard program. The state expects to have the TennCare Assist program in operation within the next year.

"Governor Sundquist and Senator Frist have shown real leadership in confronting many of the difficult challenges facing the state, including skyrocketing health care costs in the TennCare program," Secretary Thompson said. "Under the new Medicaid waiver, Tennessee has made improvements to stabilize those costs while preserving health care services for residents of Tennessee."

Also today, Secretary Thompson approved a separate request from Tennessee to extend Medicaid benefits to uninsured women who are diagnosed with breast or cervical cancer through a free screening program funded through HHS' Centers for Disease Control and Prevention.

Tennessee is the 41^st state to take advantage of the federal Breast and Cervical Cancer Prevention and Treatment Act (BCCPT) of 2000, which allows states to expand Medicaid coverage to these women who otherwise would not have health coverage.

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