If Tennessee Expanded Medicaid, Mental Health Department Could Save $40M

Gov. Bill Haslam is meeting with 26 state agencies to prepare the budget he will present to the Tennessee legislature early next year.

The state agency that oversees mental health is asking for a multi-million dollar budget increase, in part because the legislature turned down Insure Tennessee. The expansion of Medicaid would have saved the Department of Mental Health more than $40 million, according to estimates.

Currently, nearly everyone who is committed to a state institution or otherwise receives state-funded treatment is uninsured, says Mental Health commissioner Doug Varney.

“Many of these people are working; they’re just not insured, and they can’t afford out-of-pocket,” he told Gov. Bill Haslam during annual budget hearings.

Haslam has said it’s unlikely he’ll revive Insure Tennessee unless the political winds change. But during Thursday's meeting, his office did ask Varney to put a dollar figure on how much it would have saved his department. Varney said the $40 million figure is a “conservative” estimate.

“People that we serve are either one of two things: They either have really serious mental health issues, or they’re indigent," Varney said. "So for us, that would have been huge.”

The Department of Mental Health is asking for additional money to expand some existing programs next year. Namely, the agency wants $1.2 million to put drug courts in every part of the state. These programs hire caseworkers to help non-violent offenders avoid jail time and focus on their underlying problems.

Copyright 2015 WPLN News

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Blake Farmer
Blake Farmer is WPLN's assistant news director, but he wears many hats - reporter, editor and host. He covers the Tennessee state capitol while also keeping an eye on Fort Campbell and business trends, frequently contributing to national programs. Born in Tennessee and educated in Texas, Blake has called Nashville home for most of his life.