SB 955 - HB 1044 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 21, 2025 Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564 SB 955 - HB 1044 SUMMARY OF BILL: Enacts the Medical Ethics Defense Act (Act). Establishes that a healthcare provider, including a healthcare professional, healthcare institution, or healthcare payer, has the right to not participate in or pay for a healthcare procedure, treatment, or service that violates the conscience of the healthcare provider. Does not apply to procedures, treatments, or services governed by federal law, including the Emergency Medical Treatment and Active Labor Act. Establishes that a healthcare payer may not decline payment for a healthcare procedure, treatment, or service it is contractually obligated to pay for under the terms of a contract with an insured party. Establishes that the exercise of the right of conscience in declining to participate in or pay for a healthcare service may not be used as the basis for a civil, criminal, or discriminatory action against a healthcare provider. Grants whistleblower protections to a healthcare provider who reports on violations of the Act. Prohibits any political subdivision of the state from taking action against a healthcare provider for engaging in speech, expression, or association that is protected from government interference by the First Amendment to the United States Constitution, unless the political subdivision demonstrates by clear and convincing evidence that the healthcare provider's speech, expression, or association was the direct cause of physical harm to a person with whom the healthcare provider had a practitioner- patient relationship within the three years immediately preceding the incident of physical harm. Requires a department, agency, or other entity of the state to provide a healthcare provider with any complaint it receives based on the provider's speech, expression, or association which may result in the revocation of the provider's license, certification, or registration, within 21 days after receipt of the complaint, and to pay the healthcare provider $500 per day for each day the complaint is not provided after 21 days. Creates a cause of action for violations of the Act for which an aggrieved party is entitled to an award of injunctive and declaratory relief, and to recover damages sustained, along with the costs of the action and reasonable attorney fees, upon the finding of a violation. FISCAL IMPACT: NOT SIGNIFICANT SB 955 - HB 1044 2 Assumptions: • The proposed legislation authorizes healthcare professionals and healthcare institutions to refuse to participate in a healthcare procedure, treatment, or service that violates their conscience. • Pursuant to Tenn. Code Ann. § 68-11-1808(c), a healthcare provider may decline to comply with an individual instruction or healthcare decision for reasons of conscience. • Pursuant to Tenn. Code Ann. § 68-11-1808(d)(1), a healthcare institution may decline to comply with an individual instruction or healthcare decision if it is contrary to the policy of the institution that is based on reasons of conscience. • Therefore, the proposed legislation is not expected to significantly impact healthcare professionals or institutions’ operations. • The proposed legislation further prohibits a healthcare payer from being forced to pay for a medical procedure that violates their conscience, unless obligated to pay for such procedure under the terms of a contract with an insured party. • It is assumed that any non-emergency procedures which a healthcare payer deems to violate their conscience will be stated as such prior to the procedure, and therefore, will not occur. • The proposed legislation will primarily govern the actions of healthcare professionals employed by private healthcare institutions. • Any resulting impacts will be realized by the private parties involved in such actions. • The changes are not estimated to significantly impact the caseloads of state or local courts. • It is assumed that the proposed legislation will not significantly impact state departments or agencies that employ healthcare professionals as most will not be faced with situations in which they will need to participate in a procedure that violates their conscience. • A state department, agency, or other entity can provide a healthcare provider with any complaints it has received which may result in the revocation of the healthcare provider's license, certification, or registration within 21 days utilizing existing resources and personnel. • The proposed legislation will not significantly impact state or local government expenditures or operations. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director