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HB2243 • 2026

Insurance, Health, Accident

AN ACT to amend Tennessee Code Annotated, Title 8; Title 56 and Title 71, relative to healthcare provider reimbursement.

Healthcare
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Martin B, Watson
Last action
2026-05-01
Official status
Comp. became Pub. Ch. 797
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Insurance, Health, Accident

This bill prohibits health insurance entities from calculating quality measures, quality ratings, incentive payments, or reimbursement tiers for a healthcare provider by including any exempt patient in the denominator of any vaccine-related metric.

What This Bill Does

  • This bill prohibits health insurance entities from calculating quality measures, quality ratings, incentive payments, or reimbursement tiers for a healthcare provider by including any exempt patient in the denominator of any vaccine-related metric.
  • Furth er, upon receiving documentation from a healthcare provider that a patient is an exempt patient, the health insurance entity must exclude the patient from the calculation of the provider's vaccination rate performance or any other quality metric related t o vaccine status.
  • This bill also prohibits health insurance entities from terminating a healthcare provider from a network, reducing reimbursement rates, or withholding an incentive payment solely because the provider retains exempt patients in its practice.
  • Any claim fo r reimbursement that is reduced, denied, or recouped by a health insurance entity in violation of this bill is a clean claim and is subject to the interest penalties and remediation as provided in present law.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB2243

Plain English: House Insurance 1 Amendment No.

  • House Insurance 1 Amendment No.
  • 1 to HB2243 Kumar Signature of Sponsor AMEND Senate Bill No.
  • 2070* House Bill No.
  • 2243 HA0831 014409 - 1 - by deleting all language after the enacting clause and substituting: SECTION 1.
Amendment 2-0 to HB2243

Plain English: House Insurance 2 Amendment No.

  • House Insurance 2 Amendment No.
  • 2 to HB2243 Kumar Signature of Sponsor AMEND Senate Bill No.
  • 2070* House Bill No.
  • 2243 HA0832 015367 - 1 - by inserting the following at the end of § 56-7-1022 in SECTION 2 as a new subsection: (f) A health insurance entity shall not downcode a claim or reduce a reimbursement level solely because: (1) The patient is an exempt patient; or (2) A preventative care standard was not met due to the patient's exempt status.
Amendment 1-0 to SB2070

Plain English: Senate Commerce and Labor 1 Amendment No.

  • Senate Commerce and Labor 1 Amendment No.
  • 1 to SB2070 Bailey Signature of Sponsor AMEND Senate Bill No.
  • 2070* House Bill No.
  • 2243 SA0579 014409 - 1 - by deleting all language after the enacting clause and substituting: SECTION 1.

Bill History

  1. 2026-05-01 Tennessee General Assembly

    Comp. became Pub. Ch. 797

  2. 2026-05-01 Tennessee General Assembly

    Effective date(s) 07/01/2026

  3. 2026-05-01 Tennessee General Assembly

    Pub. Ch. 797

  4. 2026-04-21 Tennessee General Assembly

    Signed by Governor.

  5. 2026-04-10 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2026-04-09 Tennessee General Assembly

    Signed by H. Speaker

  7. 2026-04-06 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2026-04-06 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2026-04-02 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2026-04-02 Tennessee General Assembly

    Concurred, Ayes 32, Nays 0 (Amendment 2 - HA0832)

  11. 2026-03-31 Tennessee General Assembly

    Placed on Senate Message Calendar for 4/2/2026

  12. 2026-03-30 Tennessee General Assembly

    Comp. SB subst.

  13. 2026-03-30 Tennessee General Assembly

    Sponsor(s) Added.

  14. 2026-03-30 Tennessee General Assembly

    Passed H., as am., Ayes 80, Nays 12, PNV 0

  15. 2026-03-30 Tennessee General Assembly

    H. adopted am. (Amendment 2 - HA0832)

  16. 2026-03-30 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0831)

  17. 2026-03-30 Tennessee General Assembly

    Subst. for comp. HB.

  18. 2026-03-30 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  19. 2026-03-26 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/30/2026

  20. 2026-03-26 Tennessee General Assembly

    Engrossed; ready for transmission to House

  21. 2026-03-26 Tennessee General Assembly

    Sponsor(s) Added.

  22. 2026-03-26 Tennessee General Assembly

    Passed Senate as amended, Ayes 29, Nays 0

  23. 2026-03-26 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0579)

  24. 2026-03-25 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/26/2026

  25. 2026-03-25 Tennessee General Assembly

    Sponsor(s) Added.

  26. 2026-03-24 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  27. 2026-03-24 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/26/2026

  28. 2026-03-18 Tennessee General Assembly

    Placed on cal. Insurance Committee for 3/24/2026

  29. 2026-03-17 Tennessee General Assembly

    Action def. in Insurance Committee to 3/24/2026

  30. 2026-03-12 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2026-03-12 Tennessee General Assembly

    Senate Reset on calendar for 3/26/2026

  32. 2026-03-11 Tennessee General Assembly

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

  33. 2026-03-10 Tennessee General Assembly

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

  34. 2026-03-10 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/12/2026

  35. 2026-03-04 Tennessee General Assembly

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

  36. 2026-03-04 Tennessee General Assembly

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

  37. 2026-03-03 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 0 PNV 1

  38. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Insurance Subcommittee for 3/4/2026

  39. 2026-02-24 Tennessee General Assembly

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

  40. 2026-02-17 Tennessee General Assembly

    Sponsor(s) Added.

  41. 2026-02-09 Tennessee General Assembly

    Sponsor(s) Added.

  42. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Insurance Subcommittee

  43. 2026-02-05 Tennessee General Assembly

    P2C, ref. to Insurance Committee

  44. 2026-02-05 Tennessee General Assembly

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

  45. 2026-02-04 Tennessee General Assembly

    Sponsor(s) withdrawn.

  46. 2026-02-04 Tennessee General Assembly

    Sponsor change.

  47. 2026-02-04 Tennessee General Assembly

    Sponsor(s) Added.

  48. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  49. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  50. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  51. 2026-01-22 Tennessee General Assembly

    Filed for introduction

Official Summary Text

This bill prohibits health insurance entities from calculating quality measures, quality ratings, incentive payments, or reimbursement tiers for a healthcare provider by including any exempt patient in the denominator of any vaccine-related metric. Furth
er, upon receiving documentation from a healthcare provider that a patient is an exempt patient, the health insurance entity must exclude the patient from the calculation of the provider's vaccination rate performance or any other quality metric related t
o
vaccine status.

This bill also prohibits health insurance entities from terminating a healthcare provider from a network, reducing reimbursement rates, or withholding an incentive payment solely because the provider retains exempt patients in its practice. Any claim fo
r reimbursement that is reduced, denied, or recouped by a health insurance entity in violation of this bill is a clean claim and is subject to the interest penalties and remediation as provided in present law. As used in this prohibition, a "clean claim"
i
s a claim received by a health insurance entity for adjudication that requires no further information, adjustment, or alteration to be paid by the health insurer.

"EXEMPT PATIENT" DEFINED

As used in this bill, an "exempt patient" means a patient, or the parent or legal guardian of a minor patient, who has declined a specific vaccination or series of vaccinations and has provided the healthcare provider with a written statement of refusal
based on religious tenets or medical contraindication as recognized under state law.

APPLICABILITY

This bill applies to contracts entered into on or after July 1, 2026.

ON MARCH 26, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2070, AS AMENDED.

AMENDMENT #1 removes this bill's requirement that a patient must have provided the healthcare provider with a written statement of refusal of a vaccination based on religious tenets or medical contraindication in order to be an exempt patient for purposes
of this bill.

This amendment expands this bill's definition of "quality measure" to include

capitation rate, shared-savings distribution, and downside risk-sharing arrangement.

This amendment specifies that a health insurance entity shall not calculate a "final" quality measure, quality rating, incentive payment, or reimbursement tier for a healthcare provider at the end of each measurement period that is used to calculate prov
ider payments by including an exempt patient documented by a healthcare provider in the denominator of a vaccination-related metric.

Under this amendment, if a provider submits documentation that supports that a patient is an exempt patient and submits an electronic claim containing a standard diagnosis code indicating the immunization was not carried out, then a health insurance enti
ty must exclude the patient from the final calculation of the provider's vaccination rate performance, or any other quality metric derived from vaccination status, for the applicable measurement period.

This amendment makes this bill's prohibition against a health insurance entity terminating a healthcare provider from a network, reducing a provider's reimbursement rate, or withholding an incentive payment because the provider retains exempt patients in
the provider's practice applicable to situations where the termination, reduction, or withholding is based in whole or in part on such retention of exempt patients (instead of when the action is based solely on such retention).

ON MARCH 30, 2026, THE HOUSE SUBSTITUTED SENATE BILL 2070 FOR HOUSE BILL 2243, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 2070, AS AMENDED.

AMENDMENT #2 prohibits an insurer from downcoding a claim or reducing a reimbursement level solely because the patient is an exempt patient or a preventative care standard was not met due to the patient's exempt status.

ON APRIL 2, 2026, THE SENATE CONCURRED IN HOUSE AMENDMENT #
2
.

Current Bill Text

Read the full stored bill text
SENATE BILL 2070
By Watson

HOUSE BILL 2243
By Martin B
HB2243
011174
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 8;
Title 56 and Title 71, relative to healthcare
provider reimbursement.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Stopping Health Insurers from
Excluding Legal Decisions (SHIELD) Act."
SECTION 2. Tennessee Code Annotated, Title 56, Chapter 7, Part 10, is amended by
adding the following as a new section:
56-7-1022. Prohibition on penalizing providers for patient vaccination exemptions.
(a) As used in this section:
(1) "Exempt patient" means a patient, or the parent or legal guardian of a
minor patient, who has declined a specific vaccination or series of vaccinations
and has provided the healthcare provider with a written statement of refusal
based on religious tenets or medical contraindication as recognized under § 49-
6-5001 or other applicable state law;
(2) "Health insurance entity" has the same meaning as defined in § 56-7-
109; and
(3) "Quality measure" means a metric, standard, or benchmark used by a
health insurance entity to determine a healthcare provider's reimbursement rate,
incentive payments, bonus structure, star rating, or network participation status,
including, but not limited to, the Healthcare Effectiveness Data and Information
Set (HEDIS).

- 2 - 011174

(b) A health insurance entity shall not calculate a quality measure, quality rating,
incentive payment, or reimbursement tier for a healthcare provider by including any
exempt patient in the denominator of any vaccination-related metric.
(c) If a healthcare provider submits documentation to a health insurance entity
indicating that a patient is an exempt patient, then the health insurance entity must
exclude the patient from the calculation of the provider's vaccination rate performance or
any other quality metric derived from vaccination status.
(d) A health insurance entity shall not terminate a healthcare provider from a
network, reduce a provider's reimbursement rate, or withhold an incentive payment
solely because the provider retains exempt patients in the provider's practice.
(e) For purposes of timely reimbursement under § 56-7-109, a claim for
reimbursement that is denied, reduced, or recouped by a health insurance entity in
violation of subsection (b) or (d) is a clean claim, as that term is defined in § 56-7-109,
and is subject to the interest penalties and remediation requirements set forth under §
56-7-109.
SECTION 3. This act takes effect July 1, 2026, the public welfare requiring it, and
applies to contracts entered into, renewed, amended, or delivered on or after that date.