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Tenn. governor rejects Medicaid expansion

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Posted: Wednesday, March 27, 2013 11:52 am | Updated: 9:21 am, Wed May 15, 2013.

NASHVILLE, Tenn. — Gov. Bill Haslam announced Wednesday that a breakdown in negotiations with the federal government means that he won't expand the state's Medicaid program, a decision that will cost Tennessee billions of dollars in federal money and keep 140,000 uninsured Tennesseans from obtaining free coverage.

Haslam told a joint session of the General Assembly that he tried to get approval for a "Tennessee Plan," in which the state would accept the federal money to subsidize private insurance. But he was unable to get the proposal OK'd before his final amendments to the state's annual spending plan came due.

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