A federal judge on Monday ruled that the state’s Medicaid program, TennesseeCare, illegally terminated health insurance for thousands of Tennesseans, bringing to an end a four-year class action lawsuit.
“Poor, disabled and other disadvantaged Tennesseans should not need luck, perseverance or diligent legal work to obtain the health care benefits to which their law grants them,” U.S. District Judge Waverly D. Crenshaw wrote in the opening words of the 116-page decision.
“After years of litigation, the plaintiffs have proven that Tennessee Medicaid violated their rights under the Tennessee Medicaid Act, the Due Process Clause of the 14th Amendment and the Americans with Disabilities Act,” Crenshaw said.
The plaintiffs in the lawsuit were represented by the Tennessee Justice Center, the National Health Law Program, the National Center for Law and Economic Justice and the New York-based law firm Serendy Gay.
“This is a major victory for the plaintiffs and all Tennessee Care enrollees who lost critical health insurance due to Tennessee Care’s unlawful policies and practices,” Tennessee Justice Center Executive Director Michelle Johnson said in a news release. “We are proud to stand with these brave families who filed suit to protect the health insurance of thousands of our neighbors across the state, and we will continue to fight as this case moves forward.”
TennesseeCare Director Steven Smith was appointed by Gov. Bill Lee in March 2020. Elizabeth Johnson, a spokeswoman for Lee, said in an email to The Tennessean that the governor “continues to have the utmost confidence in his selection of Director Smith for this critical role at TennesseeCare.”
Crenshaw found that TennesseeCare failed to properly evaluate the eligibility of thousands of Tennessee families and concealed information necessary to keep their coverage, according to a news release from the Tennessee Justice Center.
In 2020, 35 children and adults filed a lawsuit alleging that thousands of children and adults with disabilities were dropped from the program due to a “flawed process” in Tennessee Medicaid’s eligibility verification system, which was implemented in March 2019. The lawsuit alleges that thousands of people lost their insurance without any notice.
Tennessee has previously acknowledged that it stepped up eligibility verification efforts and later disenrolled some participants, but denied that anyone was wrongfully disenrolled.
Related:At least 220,000 Tennessee children at risk of losing health insurance due to lack of documentation
The lawsuit alleges that Tennessee Care disenrolled about 250,000 children not because they were ineligible, but because parents neglected or didn’t fully complete Tennessee Care’s cumbersome paperwork.
The plaintiffs argue that Tennessee Medicaid’s bureaucratic red tape is not only flawed but also violates Medicaid and the Americans with Disabilities Act, noting that the eligibility system singles out people with disabilities and imposes unequal burdens on them.
Crenshaw wrote that people who have been removed from Tennessee Medicaid since the new eligibility verification system was implemented “likely faced both financial hardship and worsening health outcomes as a result of Tennessee Medicaid’s misconduct.”
“Now the Court must ensure that they receive the relief they deserve,” the judge wrote.
TennCare provides health care to about 1.5 million Tennesseans. A TennCare spokesman did not respond to a request for comment.
Evan Mealins is a justice reporter for The Tennessean. Contact him at Email: Or follow us on X (formerly Twitter). EvanmyOnerinse.
