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Committee restores limited continuation coverage amid changes to ACA premium tax credits
Summary
Lawmakers advanced HB 705 to restore Tennessee's limited continuation (mini‑COBRA) coverage that was repealed last year, citing expiration of enhanced federal premium tax credits as a driver and potential increased marketplace costs for consumers.
Chairman Gantt explained that House Bill 705 restores a limited continuation option that had been part of Tennessee law since 1980 and was repealed last year during an administrative update. He said the previous provision allowed individuals who lost employer coverage to continue their existing plan for up to three months and that restoring that option provides flexibility during transitions.
"What has changed, the ACA's enhanced premium tax credits expired on December 31," Chairman Gantt said, arguing that marketplace coverage may now be more expensive for some individuals and that consumers may prefer short‑term continuation rather than immediate plan changes. The committee attached an amendment (0140774) and voted to move the bill to the full insurance committee; the clerk reported six ayes and zero nays.
