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Committee extends hospital assessment at 6% to support TennCare funding

Senate Health and Welfare Committee · February 25, 2026
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Summary

Sen. Hale and committee members approved an amendment to continue Tennessee's voluntary hospital assessment at 6% to draw federal match for TennCare; the committee voted 9–0 to send SB1939 to finance.

Sen. Hale explained that SB1939 continues the annual hospital assessment at a 6% rate to generate state funds that draw federal matching dollars to support core TennCare benefits and stabilize hospital operations. "This hospital assessment is essential to continue to cover services for TennCare enrollees and generate much needed funds to stabilize Tennessee hospitals," Sen. Hale told the committee.

Committee members briefly discussed conflicts of interest and recusal; Sen. Massey declared Rule 13 because he sits on a hospital board. With no further discussion, the committee adopted the amendment that rewrote the bill and voted unanimously to send SB1939 to finance (9 ayes). Chairman Crow said the bill "goes to finance."