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TennCare officials describe renewals, 'no-touch' system and limits on waivers
Summary
TennCare staff told the committee that the state uses an automated 'no-touch' renewal system that successfully renewed about 83% of children in early 2025, explained letters and reconsideration windows, and warned CMS has signaled reluctance to approve further waivers — meaning any continuous-eligibility expansion could require full state funding.
TennCare officials told the Senate Health and Welfare committee how the agency currently handles eligibility redeterminations and where a statutory change would interact with federal rules.
Ashley Reid of TennCare said the agency "currently do[es], and is federally required to renew, or redetermine individuals, once a year." TC Becker (legislative liaison) explained the state's process: an automated attempt through the Tennessee eligibility determination system (TEDS) after nine months, followed by letters and an additional timeline (an extra 20 days, then a 90-day reconsideration period) to allow families to respond. Becker said TennCare was able to renew about 83% of children through the automated 'no-touch' system in 2025.
Committee members asked whether the bill would prevent TennCare from sending information requests; TennCare staff replied that notices could still be sent but that the bill, as read by agency staff, would prohibit routine redeterminations that would lead to disenrollment while leaving limited exceptions when the agency "has knowledge" of disqualifying facts. Staff also said a CMS letter (cited in testimony) indicated CMS did not intend to approve more waivers of federal renewal requirements, which would force the state to fund any continuous-eligibility expansion without federal match unless CMS reversed course.
The exchange clarified operational steps (automated renewal, letters, MCO outreach) and administrative consequences (loss of federal matching funds without CMS approval), information the committee cited during later debate on SB 401.
