TennCare - As enacted, makes revisions regarding determining when the annual coverage assessment is implemented and imposed; sets limits on the expenditures for directed payments to hospitals in certain circumstances. - , the official text

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                             PUBLIC CHAPTER NO. 115

                                                    SENATE BILL NO. 577

                                                               By Haile

                                            Substituted for: House Bill No. 1000

                                                          By Gary Hicks

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, § 71-5-2003, is amended by adding the following
as a new subsection:

                    (e) Notwithstanding this part, if the CMS determination, approvals, and confirmation set
          forth in subsection (b) have all been obtained except for the approval described in subdivision
          (b)(1)(B), then the assessment authorized by this section is implemented and imposed as set
          forth in this part.

          SECTION 2. Tennessee Code Annotated, § 71-5-2005, is amended by adding the following
as a new subsection (i):

                    (i) Notwithstanding this section, if the assessment authorized by this part is
          implemented pursuant to § 71-5-2003(e), then the expenditures for directed payments to
          hospitals set forth in subdivision (d)(2) must be limited to either the same amount authorized
          for FY 2024, as established in 2023 Public Chapter 232, or a greater amount as determined
          by the division in consultation with the Tennessee Hospital Association, up to the amount
          approved by CMS, until such time as the CMS determination, approvals, and confirmation
          outlined in§ 71-5-2003(b) have been obtained and the division provides written notice to the
          Tennessee Hospital Association pursuant to§ 71-5-2003(b).

          SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.
         SENATE BILL NO. 577

PASSED:  March 24, 2025

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                         '     -               RANDY McNALLY

                               SPEAKER OF THE SENATE

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                            CAMERON SEXTON, SPEAKER
                            HOUSE OF REPRESENTATIVES

~ Ar,ri APPROVED this       I
         day of                                2025

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                           BILL LEE, GOVERNOR