The Fiscal Review Committee approved a package of TennCare‑related contract actions on March 27, including short extensions, option‑year exercises and an increase in funding for selected services designed to support enrollment, asset verification and pharmacy operations.

Zane Sills, chief financial officer for the Division of TennCare, presented several items that the committee took up together. Senator Yeager noted that, after the committee’s prior inquiries, United (an MCO) had paid arrearages to a constituent, and he commended the department and the carrier for resolving that case.

Contracts approved and purpose
- Three managed‑care contracts: the committee approved nine‑month extensions for three MCO‑related items presented together to give the department time to complete procurement work already underway.
- Public Consulting Group (PCG): a six‑month extension and increase to the maximum liability for PCG to continue operating the asset verification system (AVS) that validates certain enrollees’ assets as required by federal rules. TennCare said the procurement to replace the delayed contracts is expected to conclude shortly and the new vendor announcement is expected soon.
- DentaQuest USA: exercised a renewal option and increased maximum liability for continued dental benefits management; TennCare said a new vendor will take over in November after an early reprocurement.
- Stellar Pharmacy Services: exercise of the final option year and funding increase for pharmacy services.

Why it matters: many of these contracts were delayed because Tennessee and other states paused routine eligibility reverification during the federal public health emergency. That pause produced an unusually large set of reverifications that TennCare and its vendors have been processing; the extensions are intended to avoid service disruptions while competitive procurements finish.

Follow up: TennCare told the committee the competitive procurement process for the AVS and related enrollment contracts is underway and expected to finish in the near term; staff said they expected to announce winners shortly.