On August 30, 2022, Tennessee submitted an amendment to the TennCare III demonstration proposing changes to the demonstration’s current special terms and conditions (STC). The request includes changes to the financing of the demonstration, moving from an aggregate cap to a per member per month cap, and revising the framework for reinvestment of demonstration savings. The state also proposes to remove the expenditure authority for pharmacy and associated pharmacy flexibilities and strengthen STC language around reduction of benefits and coverage. The federal comment period will be open from September 6, 2022 through October 6, 2022.
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