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Knox County and TennCare disagree over MCO contracts; staff and TennCare say pilot and contract edits may resolve disputes

Tennessee Advisory Commission on Intergovernmental Relations (TACIR) · July 5, 2024
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Summary

Knox County Schools told TACIR the MCO form contract used by BlueCare reads like a medical‑provider agreement and mischaracterizes schools; TennCare staff said the agency is open to piloting contract edits and pointed to recent legal/administrative changes (Public Chapter 695) and increased TennCare spending on school‑based services.

Gary Dupler, deputy law director for Knox County, told TACIR on May 30 that Knox County Schools has repeatedly pushed back against a standard managed‑care organization (MCO) contract offered by BlueCare because the template reads like a medical provider agreement and includes obligations the district says are inappropriate for a public school system.

"We are not a medical provider," Dupler said. He cited examples in the contract that asked schools to provide services outside their scope — listing schools in provider directories, care for pregnant women and prescription management — and said Knox sought a disclaimer in the agreement clarifying that schools provide limited services to enable education rather than full medical care.

Why it matters: Medicaid reimbursement can provide recurring funding…

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