State Awards TennCare Contracts to Volunteer State Health Plan

BlueCross MCO to Handle Health Care Coverage for Tennessee Medicaid Members in East, West Regions of State

CHATTANOOGA, Tenn. — The Bureau of TennCare today awarded managed care organization (MCO) contracts for its East and West Tennessee Regions to Volunteer State Health Plan, a wholly-owned subsidiary of BlueCross BlueShield of Tennessee.

The contracts to manage and deliver integrated physical and behavioral health services to nearly 373,000 TennCare enrollees go into effect on Nov. 1, 2008, for enrollees in West Tennessee and Jan. 1, 2009, for those living in East Tennessee. Both contracts will be administered on a full financial risk basis.

"VSHP is honored to have been selected to continue serving the health care coverage needs of our fellow Tennesseans," said Steve Coulter, president of the government business unit for BlueCross. "For the past 14 years we have partnered with the State to help extend affordable and quality health care coverage to Tennessee’s most vulnerable citizens. We are proud to have again been chosen to bring the best value possible to the TennCare program and those who rely on it."

According to VSHP President and CEO Sonya Nelson, VSHP approached the bid process with several key goals: help the Bureau of TennCare solve problems, improve health outcomes for members and increase customer satisfaction—all while reducing costs.

"We feel that our price and service were major factors that gave VSHP the advantage in this highly competitive bid process. From our new integrated care model and pay-for-performance incentives, to use of the State’s electronic medical record and partnering with ValueOptions® as our new behavioral health partner, VSHP showed it was able to provide value to the program and deliver on our mission of building a healthier Tennessee."

In addition to its East and West Region contracts with the Bureau of TennCare, VSHP will continue to administer coverage for nearly 70,000 lives in TennCareSelect, which addresses the needs of children in the custody of the Department of Children’s Services or those covered by Supplemental Security Insurance.