Delta Dental has been awarded a contract to serve as TennCare's dental benefits manager (DBM). The value of the three-year contract is approximately $11.9 million, assuming enrollment numbers remain consistent.
The new contract will save the state an estimated $3.5 million in administrative costs over the three-year period, the agency said.
TennCare's DBM is responsible for administering dental benefits in a manner that ensures an adequate network of dentists will provide quality, cost-effective care to more than 730,000 children on TennCare, the agency said. The DBM will also pay provider claims and provide member and outreach services.
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 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.
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