HB 201
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
January 30, 2025
Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564
HB 201
SUMMARY OF BILL: Requires the Division of TennCare (Division) to reimburse a public
or private ground-based ambulance provider that bills for transport and has a base of operations in
the state that provides a covered emergency service to a TennCare recipient at a rate not less than
67.5 percent of the federal Medicare program's allowable charge for participating providers, and to
reimburse such ambulance provider that provides a covered nonemergency service to a TennCare
recipient at a rate not less than 100 percent of the federal Medicare program's allowable charge.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 & Subsequent Years $2,265,800
FEDERAL GOVERNMENT
EXPENDITURES
FY25-26 & Subsequent Years $4,085,000
Assumptions:
• Pursuant to Tenn. Code Ann. § 71-5-165(a), both emergency and nonemergency ambulance
services are required to be reimbursed by the Division at a rate not less than 67.5 percent of
the federal Medicare rate.
• The proposed legislation will require nonemergency ambulance services provided to
TennCare recipients to be reimbursed at 100 percent of the federal Medicare rate.
• Based on information provided by TennCare's MCOs, the total impact to the Division
from increasing the reimbursement rate for nonemergency services is estimated to be
$6,350,772 in FY25-26 and subsequent years.
• Medicaid expenditures receive matching funds at a rate of 64.323 federal to 35.677 percent
state. Of this amount, $2,265,765 ($6,350,772 x 35.677%) will be in state expenditures and
$4,085,007 ($6,350,772 x 64.323%) will be in federal expenditures in FY25-26 and
subsequent years.
HB 201 2
IMPACT TO COMMERCE:
BUSINESS IMPACT
FISCAL YEAR REVENUE
FY25-26 & Subsequent Years $6,350,800
Assumptions:
• Ambulance service providers will experience a recurring increase in business revenue of
$6,350,772 in FY25-26 and subsequent years.
• The proposed legislation will not increase the number of ambulance service providers;
therefore, any impact to jobs in Tennessee is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director