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In East Tennessee on Tuesday, Gov. Bill Lee viewed a buckled road damaged by the aftermath of Hurricane Helene.  Brandon Hull/Office of the Governor via Tennessee Lookout

National health care groups warned in 2022 that the unusual Tenncare fund now being used for disaster relief would redirect dollars away from low-income enrollees

Anita Wadhwani is a senior reporter for Tennessee Lookout.

NASHVILLE ­— In the days after Hurricane Helene unleashed catastrophic floods across parts of East Tennessee — killing 17 and inflicting hundreds of millions of dollars in damage — Gov. Bill Lee convened a series of conference calls with his cabinet members to urge his team to “think outside the box” in how to get desperately needed capital to hard-hit rural counties.

TennCare Director Stephen Smith offered up a novel idea: tap into a special savings pool within Tennessee’s Medicaid program, which draws on a combination of state and federal funds to pay the health care bills for 1.5 million Tennesseans living in or near poverty — among them pregnant women, children, seniors and those with disabilities.

Lee, who later recounted the conversation at a news conference, went with it.

The Helene Emergency Assistance Loans (HEAL) program will direct $100 million in no-interest loans from TennCare to 13 disaster-struck Tennessee counties, tapping so-called “shared savings” funds that are unique to the state’s Medicaid program.