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SB0577 • 2026

TennCare

AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, relative to the annual coverage assessment.

Budget Healthcare Taxes
Active

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

Sponsor
Haile, Hicks G
Last action
2025-04-08
Official status
Effective date(s) 04/03/2025
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on hospital payments after full CMS approval or actions required upon removal of payment limits.

TennCare Annual Coverage Assessment Changes

This bill modifies when Tennessee can implement an annual coverage assessment for TennCare and sets limits on hospital payments until certain approvals are received.

What This Bill Does

  • Modifies the timeline for implementing the annual coverage assessment if all necessary determinations, approvals, and confirmations from CMS have been obtained except for a specific budget neutrality agreement approval.
  • Limits expenditures for directed payments to hospitals until full CMS approval is received.

Who It Names or Affects

  • Tennessee's TennCare program
  • Hospitals in Tennessee that receive directed payments

Terms To Know

CMS
Centers for Medicare & Medicaid Services, a federal agency overseeing health care programs.
TennCare
The state of Tennessee's Medicaid program.

Limits and Unknowns

  • It is unclear how much money will be available for hospital payments after all approvals are received.
  • The bill does not specify what happens if the CMS approval process is delayed.

Amendments

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

Amendment 1-0 to HB1000

Plain English: The amendment changes how certain assessments and payments are handled under TennCare by allowing for specific conditions where these can proceed even if some approvals from CMS have not been finalized.

  • Adds new subsection (e) to § 71-5-2003, which allows the assessment authorized by this section to be implemented and imposed if all required CMS determinations and approvals are obtained except for a specific approval in subdivision (b)(1)(B).
  • Adds new subsection (i) to § 71-5-2005, limiting expenditures for directed payments to hospitals to either the amount authorized for FY 2024 or a greater amount determined by the division with consultation from the Tennessee Hospital Association until full CMS approval is obtained.
  • The exact impact of these changes on TennCare operations and hospital funding may not be fully clear without additional context.
  • Some technical details about specific CMS approvals and their implications are referenced but not explained in detail.
Amendment 1-0 to SB0577

Plain English: This amendment changes how certain assessments and payments are handled under TennCare by allowing for specific conditions where these can proceed even if some approvals haven't been fully completed.

  • Adds new subsection (e) to § 71-5-2003, which allows the assessment authorized by this section to be implemented and imposed if all required CMS determinations and approvals are obtained except for one specific approval.
  • Adds new subsection (i) to § 71-5-2005, limiting expenditures for directed payments to hospitals until full CMS determination and approval is received.
  • The exact impact of these changes on hospital funding and TennCare operations may not be fully clear without additional context.
  • Some technical details about the specific CMS approvals mentioned are not explained in plain English within this amendment text.

Bill History

  1. 2025-04-08 Tennessee General Assembly

    Effective date(s) 04/03/2025

  2. 2025-04-08 Tennessee General Assembly

    Pub. Ch. 115

  3. 2025-04-08 Tennessee General Assembly

    Comp. became Pub. Ch. 115

  4. 2025-04-03 Tennessee General Assembly

    Signed by Governor.

  5. 2025-03-26 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-03-26 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-03-25 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-03-25 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-03-24 Tennessee General Assembly

    Passed H., Ayes 94, Nays 0, PNV 0

  10. 2025-03-24 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0078)

  11. 2025-03-24 Tennessee General Assembly

    Subst. for comp. HB.

  12. 2025-03-24 Tennessee General Assembly

    Comp. SB subst.

  13. 2025-03-20 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/24/2025

  14. 2025-03-19 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/20/2025

  15. 2025-03-17 Tennessee General Assembly

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

  16. 2025-03-13 Tennessee General Assembly

    Engrossed; ready for transmission to House

  17. 2025-03-13 Tennessee General Assembly

    Passed Senate as amended, Ayes 31, Nays 0

  18. 2025-03-13 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0076)

  19. 2025-03-12 Tennessee General Assembly

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

  20. 2025-03-11 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/13/2025

  21. 2025-03-05 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0

  22. 2025-03-05 Tennessee General Assembly

    Placed on cal. Insurance Committee for 3/12/2025

  23. 2025-03-05 Tennessee General Assembly

    Sponsor change.

  24. 2025-03-05 Tennessee General Assembly

    Sponsor(s) withdrawn.

  25. 2025-03-04 Tennessee General Assembly

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

  26. 2025-02-26 Tennessee General Assembly

    Placed on Senate Health and Welfare Committee calendar for 3/5/2025

  27. 2025-02-26 Tennessee General Assembly

    Placed on s/c cal Tenncare Subcommittee for 3/4/2025

  28. 2025-02-25 Tennessee General Assembly

    Assigned to s/c Tenncare Subcommittee

  29. 2025-02-25 Tennessee General Assembly

    Ref. to Insurance Committee

  30. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Health and Welfare Committee

  31. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  32. 2025-02-10 Tennessee General Assembly

    P2C, caption bill, held on desk - pending amdt.

  33. 2025-02-06 Tennessee General Assembly

    Intro., P1C.

  34. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  35. 2025-01-30 Tennessee General Assembly

    Filed for introduction

Official Summary Text

ON MARCH 13, 2025, SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 577, AS AMENDED.

AMENDMENT #1 rewrites the bill to, instead, provide that if the CMS determination, approvals,
and confirmation relative to the annual coverage assessment have all been obtained, except for the approval from CMS of an adjustment to the budget neutrality agreement with CMS, then the annual coverage assessment is implemented and imposed. If the annu
a
l coverage assessment is so implemented, then the expenditures for directed payments to hospitals must be limited to either the same amount authorized for FY 2024 or a greater amount as determined by the division in consultation with the Tennessee Hospita
l
Association, up to the amount approved by CMS, until such time as the CMS determination, approvals, and confirmation relative to the annual coverage assessment have been obtained and the division provides written notice to the Tennessee Hospital Associat
i
on.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 1000
By Hicks G

SENATE BILL 577
By Haile

SB0577
002477
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 71,
Chapter 5, relative to the annual coverage
assessment.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 71-5-2005(d)(2)(D), is amended by
deleting the language "seven (7) days" and substituting instead the language "five (5) days".
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.