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SB2080 • 2026

TennCare

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

Children Healthcare Taxes
Active

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

Sponsor
Watson, Williams
Last action
2026-04-14
Official status
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how much additional federal funding will be drawn down after the initial $150 million in tax revenue.

TennCare Reimbursement Act

This act changes how Tennessee collects tax from health maintenance organizations (HMOs) and uses the money to help doctors, nurse practitioners, and physician assistants get more funding for certain medical services.

What This Bill Does

  • Changes a law so that HMOs pay a 6% tax on all money they collect from patients or their insurance companies.
  • Uses the first $150 million of this tax to help draw federal funds to reimburse doctors, nurse practitioners, and physician assistants for certain medical services starting July 1, 2026.
  • Sets rules so that these healthcare providers can get up to 110% of what Medicare pays for similar services.
  • Gives the TennCare bureau and the Department of Commerce and Insurance the power to make rules about how this act works.

Who It Names or Affects

  • Health maintenance organizations (HMOs) that do business in Tennessee
  • Doctors, nurse practitioners, and physician assistants who provide certain medical services covered by TennCare

Terms To Know

CPT code
A special number used to describe different types of medical treatments or procedures when billing for healthcare.
TennCare
The Tennessee Medicaid program that provides health care services to low-income individuals and families, children, pregnant women, people with disabilities, and the elderly.

Limits and Unknowns

  • It is not clear how much additional federal funding will be drawn down beyond the initial $150 million in tax revenue.
  • The full impact on healthcare providers' reimbursement rates may vary based on Medicare's current rates for specific services.
  • This act requires further rulemaking by TennCare and the Department of Commerce and Insurance to fully implement its provisions.

Bill History

  1. 2026-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026

  2. 2026-04-08 Tennessee General Assembly

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

  3. 2026-04-07 Tennessee General Assembly

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

  4. 2026-04-01 Tennessee General Assembly

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

  5. 2026-04-01 Tennessee General Assembly

    Placed behind the budget

  6. 2026-03-25 Tennessee General Assembly

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

  7. 2026-03-23 Tennessee General Assembly

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

  8. 2026-03-23 Tennessee General Assembly

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

  9. 2026-03-18 Tennessee General Assembly

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

  10. 2026-03-17 Tennessee General Assembly

    Rec. for pass; ref to Government Operations Committee

  11. 2026-03-11 Tennessee General Assembly

    Sponsor(s) Added.

  12. 2026-03-11 Tennessee General Assembly

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

  13. 2026-03-11 Tennessee General Assembly

    Sponsor(s) Added.

  14. 2026-03-10 Tennessee General Assembly

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

  15. 2026-03-10 Tennessee General Assembly

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

  16. 2026-03-04 Tennessee General Assembly

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

  17. 2026-03-04 Tennessee General Assembly

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

  18. 2026-03-03 Tennessee General Assembly

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

  19. 2026-03-03 Tennessee General Assembly

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

  20. 2026-02-25 Tennessee General Assembly

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

  21. 2026-02-24 Tennessee General Assembly

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

  22. 2026-02-05 Tennessee General Assembly

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

  23. 2026-02-04 Tennessee General Assembly

    Sponsor(s) Added.

  24. 2026-02-04 Tennessee General Assembly

    Assigned to s/c Tenncare Subcommittee

  25. 2026-02-04 Tennessee General Assembly

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

  26. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  27. 2026-02-02 Tennessee General Assembly

    Intro., P1C.

  28. 2026-01-23 Tennessee General Assembly

    Filed for introduction

  29. 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 
HOUSE BILL 2046
By Williams

SENATE BILL 2080
By Watson
SB2080
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.