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~tate of ~ennessee
PUBLIC CHAPTER NO. 502
HOUSE BILL NO. 782
By Representatives Greg Martin, Hemmer, Terry
Substituted for: Senate Bill No. 1390
By Senator Watson
AN ACT to amend Tennessee Code Annotated, Title 71, relative to TennCare.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 71, Chapter 2, is amended by adding the
following as a new part:
71-2-601.
As used in this part:
(1) "Bureau" means the bureau of TennCare;
(2) "Director" means the director of TennCare; and
(3) "PACE program" means a program of all-inclusive care for elderly
persons that provides comprehensive, integrated acute and long-term care
services for frail, elderly individuals who require the level of care provided in a
nursing facility and who meet eligibility criteria established by the federal centers
for medicare and medicaid services (CMS).
71-2-602.
(a) The bureau shall authorize an additional PACE program as a pilot in one (1)
of the two (2) grand divisions where a PACE program did not exist in 2024.
(b) A prospective PACE applicant for the pilot program shall submit a letter of
intent to the bureau indicating the prospective applicant's intent to submit a PACE
application. The letter of intent must identify:
(1) The prospective applicant;
(2) The proposed service area, including the proposed zip codes and a
service area map; and
(3) The proposed site location for the applicant's PACE center.
(c) The director shall ensure PACE applicants meet the program eligibility criteria
under 42 CFR Part 460 and certify that applicants are qualified to be PACE providers in
the proposed geographic service area.
(d) PACE applicants shall submit a market analysis of the proposed service area,
which must include:
(1) An estimate of the number of PACE eligible individuals;
(2) A description of the methodology and assumptions used to determine
the potential membership;
(3) The projected market capture and saturation rate; and
H8782
(4) A demonstration that there is an unmet need for a PACE program in
the proposed service area.
(e) The director shall ensure that managed care organizations and all appropriate
options counseling entities consider the availability of the PACE program when
considering whether to refer a recipient to a nursing facility or other long-term care
facility and establish protocols for the referral of eligible persons to the PACE program.
(f) The bureau shall ensure all PACE programs and organizations meet the
quality and performance standards established by CMS and the bureau. The bureau
shall oversee and monitor the PACE programs and organizations based upon data and
reports that must be periodically submitted by PACE organizations to CMS and the
bureau.
(g) On or before January 1, 2026, and on or before January 1 each year
thereafter, the bureau shall provide a PACE program report to the speaker of the house
of representatives, speaker of the senate, chair of the finance, ways, and means
committee of the senate, and chair of the committee of the house of representatives
having jurisdiction over finance-related matters.
(h) The director is authorized to promulgate rules to effectuate this part. The rules
must be promulgated in accordance with the Uniform Administrative Procedures Act,
compiled in title 4, chapter 5.
71-2-603.
If a PACE program exists in a county having a population of not less than three
hundred sixty-six thousand two hundred (366,200) nor more than three hundred sixty-six
thousand three hundred (366,300), according to the 2020 federal census or a
subsequent federal census, then the service area of the program may expand into
contiguous counties having:
(1) A population of not less than twelve thousand seven hundred (12,700)
nor more than twelve thousand eight hundred (12,800), according to the 2020
federal census or a subsequent federal census;
(2) A population of not less than thirty-two thousand eight hundred
(32,800) nor more than thirty-two thousand eight hundred seventy-five (32,875),
according to the 2020 federal census or a subsequent federal census; or
(3) A population of not less than one hundred eight thousand six hundred
(108,600) nor more than one hundred eight thousand seven hundred (108,700),
according to the 2020 federal census or a subsequent federal census.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.
2
HOUSE BILL NO. 782
PASSED: April 22, 2025
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CAMERONSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
RANDY MCNALI■Y
SPEAKER OF THE SENAtE
f'.Vlt:4 r APPROVED this ~ f"5+ day of./12025
BILL LEE, GOVERNOR UteEvery fact on this page links to its source, starting with the official bill record.