All Roll Calls
Yes: 146 • No: 0
TennesseeSB 0576114th General Assembly (2025-2026)Senate
AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, relative to the annual coverage assessment.
Sponsored By: Sponsor information unavailable
Signed by Governor
TennCare
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 4 benefits, 0 costs, 2 mixed.
Hospital program allocation grows by $29,220
The law raises a hospital program allocation from $2.1114 million to $2.14062 million for fiscal year 2025–2026. That is an increase of $29,220. The supplied text does not identify the recipients or explain any change in household costs or benefits.
Hospital reimbursement for toddler care stays funded
The law allocates $598,945 for specified nonemergency inpatient care for children ages 12 to 24 months. Hospital reimbursement stays at the fiscal year 2024–2025 emergency-care rate. The money supports provider reimbursement; it does not create a cash payment to families or set their out-of-pocket costs.
Hospitals gain records and partial-year payment options
Hospitals can support assessment calculations with certificate-of-need application data or equivalent financial reports filed with the Health Facilities Commission or another state agency that licensed them. Covered hospitals that close or become excluded between July 1, 2025, and June 30, 2026, owe a prorated assessment. The calculation multiplies the annual assessment base by days from July 1, 2025, through the commission’s recorded change date, divided by total calendar days from July 1, 2025, to July 1, 2026. Hospitals previously excluded under § 71-5-2002(7)(E) that become covered and have contributed an intergovernmental transfer also receive proportional treatment. Their transfer and assessment obligations reflect the days they met each status definition.
State funds hospital payment program management
The law provides $382,400 for six full-time state employees to help run hospital payment programs. It also provides $1.6 million for a program manager contract. Together, the $1.9824 million supports program setup, operations, and ongoing management. This is administrative funding, not a direct payment to families or hospitals.
Hospital assessment continues with payment safeguards
Effective at 11:59 p.m. on June 30, 2025, the law extends Tennessee’s hospital assessment framework through July 1, 2026. The assessment starts after required federal approvals arrive, except the approval listed in § 71-5-2003(b)(1)(B). When statutory approval requirements are satisfied, hospitals pay equal installments spread as evenly as possible through fiscal year 2025–2026. Each installment is due 15 days after approved hospital payments that offset unreimbursed TennCare costs are made. During partial approval, specified hospital payments are capped at the fiscal year 2024 amount authorized by 2023 Public Chapter 232, or a higher amount TennCare sets in consultation with the Tennessee Hospital Association, no higher than federal approval allows. That cap ends only after the required federal decisions arrive and TennCare gives the association written notice.
Hospital funding formulas and minimum shares change
For specified transfer calculations tied to June 30, 2025, Tennessee uses Medicaid days and total outpatient payments from hospitals’ 2021 Joint Annual Reports. For fiscal year 2025–2026, one directed-payment distribution tier’s minimum share falls from 37% to 36%. This gives the state more allocation flexibility but lowers the share guaranteed to that tier. Related payment calculations use the 2023 Joint Annual Report instead of the 2022 report. The supplied text does not give enough detail to calculate each hospital’s dollar change.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Ed Jackson
Republican • Senate
Roll Call Votes
Senate vote • 4/14/2025
FLOOR VOTE: as Amended Third Consideration 4/14/2025
Yes: 32 • No: 0
House vote • 4/14/2025
FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/14/2025
Yes: 96 • No: 0
Senate vote • 4/8/2025
SENATE FINANCE, WAYS AND MEANS COMMITTEE
Yes: 9 • No: 0
Senate vote • 3/12/2025
SENATE HEALTH AND WELFARE COMMITTEE
Yes: 9 • No: 0
Bill Text
Enrolled / Public Chapter
Fiscal Note
HA0147
Introduced
SA0104
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