Tennessee passes interim bill for TennCare hospital assessments pending federal approval

In a recent meeting of the Senate Health and Welfare Committee, Tennessee lawmakers discussed critical legislation concerning the state's hospital assessment program under TennCare. The bill, which has been amended, seeks to authorize TennCare to continue assessing hospitals and making payments for the current fiscal year, pending full federal approval from the Centers for Medicare and Medicaid Services (CMS).

Last year, the legislature passed a significant reform to modernize the hospital assessment, aimed at addressing the financial challenges faced by hospitals across Tennessee. However, the approval process from CMS has been gradual, resulting in only partial authorization for the updated assessment structure. This has created a need for additional legislative action to ensure that TennCare can maintain its operations and continue making necessary payments to hospitals while awaiting full federal approval.

Zach Blair, representing the Tennessee Hospital Association, clarified that the current legislation serves as interim authorization, allowing TennCare to operate under the existing approved framework until the budget neutrality approval is granted by CMS. This approval is crucial for the full implementation of the hospital assessment program. The committee members expressed concerns about the implications of not passing the bill, as it could jeopardize the flow of funds to hospitals.

The discussions highlighted the complexities of the federal approval process, which has unfolded in stages rather than all at once. Lawmakers emphasized the importance of this legislation to ensure that hospitals receive the financial support they need during this transitional period. The committee plans to revisit the hospital assessment in the coming week, with expectations of further developments.

As the state navigates these challenges, the outcome of this legislation will have significant implications for the healthcare landscape in Tennessee, particularly for hospitals that rely on these assessments for financial stability. The committee's actions will be closely monitored as they work towards securing the necessary approvals and ensuring the continuity of care for Tennessee residents.