Tennessee House Bill HB1723

Tennessee 2023-2024 Regular Session

• Introduced: 1/9/24
• Refer: 1/11/24
• Refer: 3/19/24
• Refer: 3/26/24
• Refer: 4/10/24
• Refer: 4/17/24
• Chaptered: 5/13/24
• Passed: 5/13/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, relative to the annual coverage assessment.

Impact

The implications of HB1723 are far-reaching within state healthcare policies. By solidifying the annual coverage assessment, the bill will enhance the resources available to hospitals for treating uninsured and underinsured patients. Hospitals will be required to pay their annual assessments in installments, complying with a structured payment system designed to avoid any disruption in healthcare delivery. The bill also clarifies responsibilities related to coverage assessments, establishing mechanisms for enforcement including penalties for non-compliance, thereby ensuring that hospitals do not evade their financial commitments.

Summary

House Bill 1723 amends Tennessee's healthcare regulations, specifically regarding the annual coverage assessment implemented on hospitals. The bill seeks to establish a framework for funding TennCare, ensuring that the state can maintain its contributions to healthcare services. This version of the bill aims to generate an estimated 6% revenue from covered hospitals based on their net patient revenue, excluding Medicare, thus supporting the financial stability of TennCare in the upcoming fiscal year 2024-2025. Provisions are included to ensure that coverage assessments do not justify reductions in state funding to the division tasked with administering these funds.

Sentiment

The overall sentiment toward HB1723 appears to be cautiously optimistic among supporters who see it as a necessary move to secure funding for vital health services. However, concerns have been raised regarding potential burdens on hospitals, particularly smaller and rural facilities that may struggle with the additional financial obligations imposed by the annual coverage assessment. The perspectives on the bill highlight a balance between providing needed healthcare funding while not overburdening local hospitals with financial requirements that could compromise their operations.

Contention

Notable points of contention present in discussions about HB1723 center on the sustainability of the funding model it proposes. Critics argue that an increased financial burden on hospitals could lead to elevated patient care costs or reduced service capabilities, particularly in rural or safety-net hospitals. On the other hand, proponents of the bill contend that maintaining a robust funding stream through the assessment is essential to ensuring adequate healthcare coverage across the state. The debate reflects broader discussions on healthcare financing and the responsibilities of state entities versus local healthcare providers.