Premiums are based on an individual's age, tobacco use and body mass index (BMI), which is the ratio between height and weight. See the Weight Status Table for target weight definition.

To make premiums affordable for qualified employers and employees, the total premium is divided equally among the state*, the participating employer and the employee. The employer may elect to pay both the employer and employee share, if they so choose. Self-employed individuals are responsible for two-thirds of the premium and the state will pay one-third of the premium. (*The state will not pay any portion of the premiums for employees who do not live in Tennessee.)

The employee's premium is payroll deducted by the employer. Employers are then required to remit both the employee's and the employer's premium through electronic funds transfer each month. The state will be billed directly for its one-third share.

Businesses and employees may benefit by establishing a Section 125 plan and deducting CoverTN premiums pre-tax. However, neither the State of Tennessee nor BlueCross BlueShield of Tennessee are plan administrators and, therefore, cannot provide tax advice. We encourage business owners and employees to consult with their tax advisor.

Should a covered individual change jobs or lose their job, they may continue CoverTN coverage; however, the individual will have to assume responsibility for the one-third of the premium that had been paid by the employer in addition to the one-third premium that was already being paid by the individual. The state will continue contributing its one-third share of the premium. In cases where the employee worked for a Tennessee employer but lived in a bordering state, then that individual would no longer be eligible for CoverTN.

CoverTN members who move into another age band will see their premium increase effective January 1 of the following year.