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TennCare seeks 12-month Deloitte extension and large liability increase; committee presses on reprocurement timetable
Summary
TennCare requested a 12-month extension and an increase in maximum liability (approximately $152 million, state share about $28 million) for the Deloitte contract that runs the TennCare Connect eligibility system; officials said the system handled post‑PHE enrollment pressures and a new RFP is planned for later this year.
Zane Sills, chief financial officer for TennCare, told the committee the amendment with Deloitte extends the competitively procured contract by 12 months and seeks to increase the maximum liability by roughly $152,000,000 (with an estimated state share of about $28,000,000) to cover the current operations and federal matching funds. Sills said TennCare Connect managed extraordinary enrollment during the federal public health emergency—"our enrollment ballooned ... to 1,800,000"—and is now back to about 1,400,000, which the department said helped avoid interruptions other states faced.
Committee members pressed the department on vendor dependency and procurement timing. Sills said Tennessee "owns the system" and structured the contract so another vendor could operate it; he said reprocurement was delayed during the PHE but a new competitive RFP is projected to go live around Thanksgiving. Jeff Yarbrough and other members asked about historic contract scope and rising annual spend; Sills explained how maximum liability figures track annual spend and option-year structuring. The committee approved the amendment by voice vote after discussion.
