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Committee advances bill to use MCO tax revenue to boost certain provider rates
Summary
House Bill 2,046 aims to use revenue from the MCO tax to increase TennCare reimbursement rates for targeted specialties; sponsor said the tax generated about $150 million and the bill passed committee (15 ayes).
Chairman Williams explained House Bill 2,046, saying the measure would create a funding vehicle by leveraging MCO tax revenues generated through the hospital investment program to increase TennCare rates for certain provider specialties. He told the committee the MCO tax generated additional state revenue and could be used to narrow reimbursement gaps that threaten access.
Committee members asked clarifying questions about which specialties would benefit and whether payments would flow directly to providers. Williams said the intent is to provide TennCare with funds to increase provider rates, not to route money through the MCOs for unrelated administrative uses. Clerks reported a committee tally of 15 ayes, no nays; the bill moves to Government Operations Committee.
