The Tennessee State Legislature introduced Senate Bill 210 on January 27, 2025, aimed at reforming reimbursement rates for ambulance service providers under the TennCare program. The bill seeks to address the financial challenges faced by both urban and rural ambulance services in providing care to TennCare recipients.

Key provisions of the bill stipulate that the Bureau of TennCare must reimburse urban ambulance service providers at a minimum rate of 67.5% of the federal Medicare program's allowable charges. In contrast, rural ambulance service providers would receive reimbursements at a rate of 100% of the same Medicare charges. This adjustment is intended to ensure that ambulance services can sustain operations while serving TennCare patients.

Additionally, the bill includes a provision for the Bureau of TennCare to pursue intergovernmental transfers of funds, with the goal of increasing reimbursement rates beyond the established minimums. It also mandates the development of a program similar to the federal Emergency Triage, Treat, and Transport (ET3) model, which aims to enhance emergency medical services delivery.

Notably, the bill specifies that for-profit ambulance service providers offering rural services will be eligible for emergency medical services equipment grants, potentially improving the quality of care in underserved areas.

Debate surrounding Senate Bill 210 has focused on its potential impact on the financial viability of ambulance services, particularly in rural regions where operational costs are often higher. Supporters argue that the bill is crucial for ensuring timely emergency care, while opponents express concerns about the long-term sustainability of funding and the implications for the state budget.

The passage of this bill could have significant economic and social implications, particularly for rural communities that rely heavily on ambulance services. Experts suggest that improved reimbursement rates may lead to better emergency response times and enhanced patient outcomes, ultimately benefiting the healthcare system as a whole.

As the bill progresses through the legislative process, stakeholders are closely monitoring its developments, anticipating potential amendments and discussions that could shape its final form. The outcome of Senate Bill 210 will likely influence the future of emergency medical services in Tennessee, particularly for vulnerable populations relying on TennCare.