Tennessee to Go in New Direction for Medicaid Eligibility Determination System

Independent consultant report provides recommendations for next steps

NASHVILLE – – The state of Tennessee’s Medicaid program, TennCare, announced plans to begin the process of selecting a new vendor for the continued development of the Tennessee Eligibility Determination System (TEDS).

After months of delays and missed benchmarks, the state hired an independent international consulting firm to perform an assessment of TEDS to review the project as it currently exists, identify project deficiencies, and identify potential risks to the TennCare program. The assessment was also intended to provide the state with potential alternatives in order to successfully move forward with the development of the TEDS project.

The consulting firm, KPMG, LLC, released a full report to the state with detailed findings. As a result of these findings, and based on the options provided to the state by KPMG, LLC, the state and current vendor have mutually decided it to be in their respective best interests to terminate the current contract early. The state will be moving forward with the process to select a new vendor.

The state will continue to use the current process of accepting TennCare applications through the federal Marketplace – www.healthcare.gov – as well as offering assistance through all Department of Human Services offices and local Area Agencies of Aging and Disability (AAAD) offices.