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TennCare says it reimburses nonemergency medical transportation; lawmakers still press sustainability questions

Senate Finance, Ways and Means Committee · March 10, 2026
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Summary

Committee members questioned how the administration's $9 million nonemergency medical transportation investment would become sustainable; a TennCare official said TennCare reimburses authorized nonemergency transport but acknowledged rural provider and driver shortages complicate access.

Senators asked whether the $9,000,000 line item for nonemergency medical transportation is linked to ambulance spending and how the state will ensure ongoing access and reimbursement.

A TennCare official told the committee that "TennCare does pay for non emergency medical transportation, for members when they travel to authorized services," listing clinic visits, dialysis and pharmacy trips as reimbursable uses. The official said the challenge in rural areas is not eligibility but on‑the‑ground access—vehicles, drivers and on‑demand capability are limited in many counties.

Committee members raised the possibility that existing human resource agencies and private vendors that already provide nonemergency transport could apply for competitive grants to modernize fleets and driver capacity. The administration said those entities would be eligible to compete for funds and that the state would welcome vendor‑led administrative support for a statewide coordination platform to improve efficiency.

Members continued to press whether broader payer reforms are needed to make nonemergency transport sustainable in the long term; TennCare officials said they are engaged in planning and that TennCare reimbursement can support authorized trips but that other payers may approach the service differently.