Tennessee Gov. Don Sundquist has proposed a radical overhaul of the state's managed Medicaid program. TennCare was close to collapse after some participating health plans experienced financial problems or threatened to pull out.

Sundquist's plan would boost premiums and transfer some risk to the state. Until now, health plans have borne all risk, and they and their providers have long claimed that state underfunding and uncompensated care were hurting their efforts.