HB 479 - SB 530
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 24, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
HB 479 - SB 530
SUMMARY OF BILL: Enacts the Tennessee National Guard Servicemember’s Medical Readiness
Act. Establishes a TRICARE premium reimbursement program within the Military Department
(DOM) to assist eligible Tennessee National Guard (TNG) members with healthcare costs.
Authorizes reimbursement grants for eligible servicemembers who pay premiums for TRICARE
Reserve Select or TRICARE Dental Program coverage.
Requires the Adjunct General to develop policies and guidelines for administering reimbursements
and ensures that any federal reimbursement for these premiums supersedes state reimbursement.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 & Subsequent Years $9,828,300
Total Positions Required: 1
Assumptions:
• TRICARE is the U.S. military’s government-managed health insurance program, providing
coverage for active-duty service members, National Guard members, reservists, retirees,
and their families.
• The proposed legislation creates a reimbursement program within DOM to support eligible
TNG members by authorizing reimbursement for premiums paid under TRICARE Reserve
Select and the TRICARE Dental Program.
• There are 12,412 members of the Tennessee National Guard, 9,808 are eligible for
TRICARE Reserve Select and TRICARE Dental Program coverage.
• For the purpose of this analysis, it is assumed that all eligible TNG members will apply for
both health and dental coverage. The monthly premium for TRICARE health and dental is
$82.84 per member ($51.95 health premium + $30.89 dental premium), leading to an
estimated monthly state expenditure of $812,495 (9,808 members × $82.84 in premiums).
• The recurring increase in state expenditures is estimated to be $9,749,940 ($812,495 x 12
months) in FY25-26 and subsequent years.
• The DOM payroll office will oversee the program by verifying eligibility and processing
reimbursements through payroll submission. To manage the program, the Department will
require one additional Administrative Services Assistant 3 position (ASA3) to evaluate
qualifying packets and oversee disbursement of reimbursements. The cost for this position
is outlined below:
HB 479 - SB 530 2
Title Salary Benefits
#
Positions Total
ASA3 $60,336 $18,038 1 $78,374
• Therefore, the proposed legislation is expected to result in a recurring cost of $9,828,314
($9,749,940 + $78,374) annually, beginning in FY25-26.
• It is assumed that the Adjunct General can develop policies and guidelines for
administering reimbursements within existing resources and personnel.
• The proposed legislation specifies that federal reimbursement supersedes state
reimbursement; however, the extent and timing of federal reimbursement for this program
cannot be reasonably determined. None such reimbursement is assumed.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director