Committee backs annual hospital assessment at 6% to support TennCare
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Summary
The committee approved an amendment and advanced SB1939, continuing the hospital assessment at 6% to generate state dollars that draw federal matching funds and support core TennCare benefits and hospital stability.
The Senate Health Committee adopted an amendment that rewrites and advances Senate Bill 1939, continuing Tennessee’s voluntary hospital assessment at a 6% rate that sponsors say is essential to maintain TennCare benefits and stabilize hospital finances.
Senator Hale explained that the assessment, first passed in 2010, generates state funding that draws federal matching dollars and supports core TennCare enrollee benefits. "This bill will continue assessment at rate at 6% which generates state dollars to draw down federal matching dollars to fund many of the key services and benefits for TennCare patients," he said.
Supporters said the hospital investment program funded through the assessment helps hospitals absorb uncompensated care while facing higher labor and supply costs. Opposition was not recorded in committee testimony; Senator Massey declared Rule 13 due to his service on a Knoxville hospital board and acknowledged the potential conflict.
The amendment passed on voice and the roll call later recorded nine ayes; the measure was reported to finance for further consideration.
