SB 321 – HB 498
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 4, 2025
Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564
SB 321 – HB 498
SUMMARY OF BILL: Creates the Advisory Task Force on State Reimbursement Rates
(Task Force), to make recommendations on annual adjustments to the reimbursement rates paid to
agencies that perform healthcare functions and services in the state. The Task Force is attached to
the Department of Health (DOH) for administrative purposes.
Requires the Task Force to make recommendations to the relevant state officials and agencies
holding provider contracts by August 1 of each year, beginning in 2026. Requires the annual report
to be submitted to the chairs of specific and relevant committees, the Governor, and the
Commissioner of Finance and Administration.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 & Subsequent Years $13,200
Assumptions:
• The Task Force will consist of ten members: six public members and four agency
representatives from the executive branch.
• Members of the Task Force serve without compensation, but will receive reimbursement
for necessary expenses.
• The four agency representatives will attend meetings in the course of their regular duties
and will not receive additional reimbursement.
• The Task Force may meet as it deems necessary; it is assumed the Task Force will meet
quarterly.
• The proposed legislation will result in the following increase in state expenditures:
Non-Legislative Member Reimbursement FY25-26 and subsequent years
Members Per Mtg Cost/Member Reimbursed Meetings/Year
Mileage 6 $173 4 $4,152
Per Diem 6 $379 4 $9,096
Total: $13,248
• The total recurring increase in state expenditures is estimated to be $13,248 in FY25-26 and
subsequent years.
SB 321 – HB 498 2
• The DOH will be able to provide administrative support to the Task Force utilizing existing
staff and resources, without a significant increase in expenditures.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director