Gardenhire took advantage of ACA's adult-child rule

Sen. Todd Gardenhire, R-Chattanooga, benefited from the Affordable Care Act by having his adult son enrolled on state benefits, but voted twice to keep Tennessee from using the federal health law to provide health coverage to poor people.

The law mandates that all employer-based plans allow workers to add coverage for their children up to age 26. Gardenhire adamantly disputed state documents obtained by The Tennessean that showed he had a child on the plan and hung up on a reporter Monday morning, but then called back to "eat crow," apologize and say that his son, Andrew, had been covered.

Gardenhire touched off the controversy about lawmaker benefits in February by denying he had coverage on the state plan in an exchange with Sen. Jeff Yarbro, D-Nashville. The exchange led to The Tennessean requesting records detailing how many lawmakers receive state health insurance and the cost to taxpayers.

Even though lawmakers are considered part-time employees, the state has paid nearly $5.8 million in premiums for them since 2008.

After denying in February he was covered by the state plan, Gardenhire corrected himself, just as he did on Monday about the family coverage. Gardenhire is a licensed insurance agent and a financial adviser for Morgan Stanley in Chattanooga.

His initial response to being asked Monday if he had a child on the plan: "I do not and never have had. You guys continually misprint information about me. I really don't appreciate it. I have never had a child on my insurance. Never. That is spelled with a capital N."

But he called The Tennessean reporter back Monday morning to correct himself. He said he asked Connie Ridley, the director of legislative administration, if his son had ever been on the plan.

"She said 'When you signed up, you signed up for the family and you put him down,' " Gardenhire said. "So I'm here to eat crow with you — if you've ever had to eat crow with someone. I'm having to call up and say I was wrong. You were right."

His son, Andrew Gardenhire who is now 27, was on the plan in 2012 and 2013. Gardenhire's wife was also on the plan until she qualified for Medicare.

Gardenhire said he did not intend to mislead.

"Look, when I went in and went up to sign papers and signed all the stuff, I did not realize that," he said. "I signed up for family coverage. My son was in college. That's how come he is on so late. He was going to college."

Andrew Gardenhire never used the health benefits, the senator said, to the best of his knowledge. He said he asked his son, who could not recall ever having to go to see a doctor during the time frame he was on benefits paid for by the state.

"In January 2014, I canceled all the family stuff and just had me on there," he said. "I canceled that on Feb. 9 of this year. I signed all the paper work and canceled that."

The senator provided The Tennessean a copy of the cancellation letter.

On Friday, Ridley also confirmed by email that Gardenhire completed and filed the paperwork to drop from the plan. But Ridley said actuaries "forecast cost and premiums based on the entire risk pool and a full year of premiums."

"As such, the senator cannot be removed in the Edison benefits system until the open enrollment period in the fall of 2015 with the closing of a full year," Ridley said.

Gardenhire twice helped keep legislators from having a floor vote on Insure Tennessee, striking down Gov. Bill Haslam's alternative to Medicaid expansion when he served on one committee during a special session and on another committee during the regular session.

Gardenhire generated media attention after being videotaped in a Legislative Plaza hallway calling a constituent an a--hole. The constituent had yelled out a question about the senator's state health benefits.

Haslam came up with the Insure Tennessee plan to help working families buy into the employer-based health plans they cannot afford.

Working people account for more than half of all Tennesseans who would gain health coverage if the state used Medicaid expansion dollars, according to a report issued in August by Families USA. A family of three making up to $27,310 would qualify. (The current cutoff is $21,770 for a family of three.)

Insure Tennessee also would extend health coverage to single adults earning less than $16,105 who don't meet current requirements, such as being the parent of a Medicaid-eligible child.

The Insure Tennessee plan would require no funding from state coffers.

The Affordable Care Act allows the federal government to pick up the full cost of insuring new people who qualify for Medicaid under the expanded guidelines through 2016. It will then phase down to a permanent 90 percent matching rate in 2020. The Tennessee Hospital Association has agreed to put up the matching money that would be required from the state through an "enhanced coverage fee," which is a voluntary bed tax.

Hospitals will end up getting $9 back for every $1 they pay if the state legislature passes the plan and it meets federal approval. Tennesseans are already paying the federal taxes for Medicaid expansion.

Reach Tom Wilemon at 615-726-5961 and on Twitter @TomWilemon.

Todd Gardenhire

Age: 67

Occupation: Senior vice president, wealth management

Hometown: Chattanooga

First elected: 2012