KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Tennessee

HB2046 • 2026

TennCare

AN ACT to amend Tennessee Code Annotated, Title 56; Title 63; Title 68 and Title 71, relative to TennCare.

Healthcare Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Williams, Watson
Last action
2026-04-08
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

The exact rules that the Bureau of TennCare and the Department of Commerce and Insurance will create to implement this law are not yet known.

TennCare Reimbursement Act

This act changes how Tennessee uses tax revenue from health maintenance organizations (HMOs) starting July 1, 2026, to draw down federal funds for specific medical services under TennCare.

What This Bill Does

  • Changes the way HMO taxes are used starting July 1, 2026. The first $150 million collected from these taxes will be used to draw down federal funds to reimburse physicians, advanced practice registered nurses, and physician assistants for certain medical services under TennCare.
  • Requires that healthcare providers receive up to 110% of the current Medicare rate when they are reimbursed through TennCare for specific CPT codes related to evaluation and management, obstetrics and gynecology, or anesthesia.

Who It Names or Affects

  • Health maintenance organizations doing business in Tennessee.
  • Physicians, advanced practice registered nurses, and physician assistants who provide certain medical services under TennCare.
  • The state government agencies responsible for managing TennCare and regulating HMOs.

Terms To Know

CPT code
A unique number that represents different types of medical, surgical, or diagnostic services used in billing healthcare services.
TennCare
The state's Medicaid program for low-income and disabled residents.

Limits and Unknowns

  • It is unclear how much additional federal funding will be drawn down beyond the initial $150 million in tax revenue.
  • The exact rules that the Bureau of TennCare and the Department of Commerce and Insurance will create to implement this law are not yet known.

Bill History

  1. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-04-07 Tennessee General Assembly

    Recommended for passage, refer to Senate Finance, Ways, and Means Committee

  3. 2026-04-01 Tennessee General Assembly

    Placed behind the budget

  4. 2026-04-01 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 4/7/2026

  5. 2026-03-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026

  6. 2026-03-23 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  7. 2026-03-23 Tennessee General Assembly

    Rec. for pass; ref to Finance, Ways, and Means Committee

  8. 2026-03-18 Tennessee General Assembly

    Placed on cal. Government Operations Committee for 3/23/2026

  9. 2026-03-17 Tennessee General Assembly

    Rec. for pass; ref to Government Operations Committee

  10. 2026-03-11 Tennessee General Assembly

    Placed on cal. Insurance Committee for 3/17/2026

  11. 2026-03-11 Tennessee General Assembly

    Sponsor(s) Added.

  12. 2026-03-11 Tennessee General Assembly

    Sponsor(s) Added.

  13. 2026-03-10 Tennessee General Assembly

    Action def. in Insurance Committee to 3/17/2026

  14. 2026-03-10 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/17/2026

  15. 2026-03-04 Tennessee General Assembly

    Placed on cal. Insurance Committee for 3/10/2026

  16. 2026-03-04 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/10/2026

  17. 2026-03-03 Tennessee General Assembly

    Rec. for pass by s/c ref. to Insurance Committee

  18. 2026-03-03 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/10/2026

  19. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Tenncare Subcommittee for 3/3/2026

  20. 2026-02-24 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/3/2026

  21. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  22. 2026-02-04 Tennessee General Assembly

    Assigned to s/c Tenncare Subcommittee

  23. 2026-02-04 Tennessee General Assembly

    P2C, ref. to Insurance Committee - Government Operations for Review

  24. 2026-02-04 Tennessee General Assembly

    Sponsor(s) Added.

  25. 2026-02-02 Tennessee General Assembly

    Intro., P1C.

  26. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  27. 2026-01-23 Tennessee General Assembly

    Filed for introduction

  28. 2026-01-22 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law requires health maintenance organizations doing business in this state to pay a 6% tax on the gross amount of all dollars collected from an enrollee or on an enrollee's behalf. Beginning on July 1, 2026, this bill requires the first $150 mil
lion of such tax revenue to be utilized to draw down federal funds to reimburse a physician, advanced practice registered nurse, or physician assistant who is entitled to receive TennCare reimbursement for a CPT code for evaluation
and management, obstetric
s and gynecology, or anesthesia
.

This bill requires such reimbursement to be allocated up to 110% of the current medicare reimbursement rate for the same CPT code.

RULEMAKING

This bill authorizes the bureau of TennCare and the department of commerce and insurance to promulgate rules to effectuate this bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2080
By Watson

HOUSE BILL 2046
By Williams
HB2046
011467
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 56;
Title 63; Title 68 and Title 71, relative to
TennCare.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 56-32-124, is amended by adding
the following as a new subsection:
(d) Notwithstanding another law, beginning July 1, 2026, the first one hundred
fifty million dollars ($150,000,000) of tax revenue collected pursuant to this section must
be utilized to draw down federal funds to reimburse a physician, advanced practice
registered nurse, or physician assistant who is entitled to receive TennCare
reimbursement for a CPT code for evaluation and management, obstetrics and
gynecology, or anesthesia pursuant to § 71-5-175.
SECTION 2. Tennessee Code Annotated, Title 71, Chapter 5, Part 1, is amended by
adding the following as a new section:
71-5-175.
(a) As used in this section:
(1) "Advanced practice registered nurse" has the same meaning as
defined in § 63-7-126;
(2) "CPT code" means the unique numerical designations established by
the American Medical Association for various medical, surgical, and diagnostic
services used in billing healthcare services;
(3) "Physician" means a person licensed to practice medicine pursuant to
title 63, chapter 6, or osteopathic medicine pursuant to title 63, chapter 9; and

- 2 - 011467

(4) "Physician assistant" means a person licensed pursuant to title 63,
chapter 19.
(b) Notwithstanding another law, beginning July 1, 2026, the first one hundred
fifty million dollars ($150,000,000) of tax revenue collected under the health
maintenance organization tax levied pursuant to § 56-32-124 must be utilized to draw
down federal funds to reimburse a physician, advanced practice registered nurse, or
physician assistant who is entitled to receive TennCare reimbursement for a CPT code
for evaluation and management, obstetrics and gynecology, or anesthesia.
(c) Reimbursement under subsection (b) must be allocated up to one hundred
ten percent (110%) of the current medicare reimbursement rate for the same CPT code.
(d) The bureau of TennCare and the department of commerce and insurance
may promulgate rules to effectuate this section. The rules must be promulgated in
accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter
5.
SECTION 3. For the purpose of promulgating rules, this act takes effect upon becoming
a law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2026,
the public welfare requiring it, and applies to TennCare reimbursements for services provided
on or after that date.