TennCare Awards Dental Benefits Contract

Friday, July 16, 2010 | 02:07 pm

Contract Saves State in Administrative Costs

NASHVILLE — State officials announced today that Delta Dental was awarded the contract to serve as TennCare’s dental benefits manager (DBM).   The new contract will save the state an estimated $3.5 million in administrative costs over the three-year contract period.

 TennCare’s DBM is responsible for administering dental benefits in a manner that insures an adequate network of dentists will provide quality, cost-effective care to more than 730,000 children on TennCare.  The DBM will also pay provider claims and provide member and outreach services.

 “TennCare looks forward to this new partnership which will allow children on TennCare to continue to receive quality dental care while saving state dollars,” said TennCare Director Darin Gordon.  “This is especially important in today’s economic times when more and more families rely on government assistance, and we will make sure our enrollees continue to receive care during the transition to this new dental network.”

Delta Dental, along with five other competitors, presented proposals for the contract through the competitive bid process.  The state issued a request for proposal on May 27, 2010, and the six competitors sent in their proposals on June 8, 2010.  Delta Dental was the most competitive bidder, achieving the highest overall score and was awarded the three-year contract with two, optional one-year renewable periods. The value of the new contract over the three-year period is approximately $11.9 million assuming today’s enrollment numbers remain the same over the three-year period.  Delta will assume DBM responsibilities October 1, 2010.

TennCare is Tennessee’s managed-care Medicaid program serving approximately 1.2 million low-income children, pregnant women and disabled Tennesseans, with an annual budget of $7 billion.