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From: Dean G. Huffman (perinatl@slip.net)
Wed Oct 4 07:57:21 1995


Furious Marketing Battle in Tennessee's Switch to Managed Care

NY TimesFAX (http://199.97.97.11:80/times.pdf) October 3, 1995

MEMPHIS — Funny things happened around this city last year when a half dozen health care plans battled to enroll a quarter of a million poor people.

The plans that signed up the most people could get tens of millions of dollars under TennCare, a new state health system. So, some promised new members free life insurance and secured credit cards. One offered holiday turkeys to members who enrolled friends. But no plan outdid OmniCare. One of its sales people, a recreation counselor at the state prison farm, was arrested for enrolling felons. Felons did not qualify for TennCare because they get medical services from the Department of Correction.

For a time, the plan’s sales represen-tatives were coached by Coby Smith, a veteran political campaign worker in town. Mr. Smith said he had instructed them to go door to door, but not spending more than 15 minutes with a prospect. "Knock on their doors," Mr.Smith said he told the representatives at about a dozen training sessions. "Be observant. If you see a physical prob-lem, you don’t need to sign those people. ... Do not create a risk situation for the company if you can."

Tennessee’s health care overhaul gave thousands of uninsured state res-idents the gift of coverage. But it also showed how a hastily organized man-aged care system can open the door for a special brand of fraud and abuse.

By MARTIN GOTTLIEB





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