TennCare has responded to requests from the federal government to make changes to its policies and budgeting strategy.

On June 30, the Centers for Medicare and Medicaid Services sent a letter to Stephen Smith, the director of TennCare, requesting that the organization abandon its proposed closed formulary (which would limit the drugs the state insurance would cover), submit a new financing model based on monthly numbers of Tennesseans enrolled and seek CMS approval and a public comment period for any cuts in coverage or benefits.