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PUBLIC CHAPTER NO. 115
SENATE BILL NO. 577
By Haile
Substituted for: House Bill No. 1000
By Gary Hicks
AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, relative to the annual coverage
assessment.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, § 71-5-2003, is amended by adding the following
as a new subsection:
(e) Notwithstanding this part, if the CMS determination, approvals, and confirmation
set forth in subsection (b) have all been obtained except for the approval described in
subdivision (b)(1 )(B), then the assessment authorized by this section is implemented and
imposed as set forth in this part.
SECTION 2. Tennessee Code Annotated, § 71-5-2005, is amended by adding the following
as a new subsection (i):
(i) Notwithstanding this section, if the assessment authorized by this part is
implemented pursuant to § 71-5-2003(e), then the expenditures for directed payments to
hospitals set forth in subdivision (d)(2) must be limited to either the same amount authorized
for FY 2024, as established in 2023 Public Chapter 232, or a greater amount as determined
by the division in consultation with the Tennessee Hospital Association, up to the amount
approved by CMS, until such time as the CMS determination, approvals, and confirmation
outlined in § 71-5-2003(b) have been obtained and the division provides written notice to the
Tennessee Hospital Association pursuant to§ 71-5-2003(b).
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it. PASSED:
APPROVED this
SENATE BILL NO. 577
March 24, 2025
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' - RANDY McNALL Y
SPEAKER OF THE SENATE
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CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
~ day of Ar,ri I 2025
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BILL LEE, GOVERNOR