Tennessee started TennCare, a managed care Medicaid program in 1994.  What happened with that?  Tennessee’s Troubled ‘Public Option’ – TennCare – Could Foreshadow Obama’s Health Care Plan

…Rep. Marsha Blackburn (R-Tenn.) was a Tennessee state senator through much of the TennCare problems and believes it is a forecast of what would happen under federal health care “public option” plan. While supporters of the Tennessee program said it would save money, it wound up eating 38 percent of the state’s budget, she said.

“As a result of this, insurance rates for those who have private coverage were going through the roof,” Blackburn told a gathering at the conservative Heritage Foundation last week.

“There is no example that you can point to that shows where having private insurance in competition with the public option brings the costs down. It leads to exploding costs,” she said…

More at the link.