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HB 498

Health Care - As enacted, creates the advisory task force on state reimbursement rates to make recommendations on annual adjustments to the reimbursement rates paid to agencies that perform healthcare functions and services, the purpose of which is to ensure such reimbursement rates are adequate. - Amends TCA Title 4; Title 62 and Title 63.

114th Regular Session (2025-2026) Introduced by Michael Hale

Tennessee creates an advisory task force to recommend annual adjustments to healthcare provider reimbursement rates to ensure adequacy and sustainability of services statewide.

Pub. Ch. 144
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Bill Summary · HB 498

Legislative bill overview

HB 498 establishes an advisory task force in Tennessee charged with making annual recommendations on adjusting reimbursement rates paid to healthcare service providers and agencies. The bill amends multiple sections of Tennessee code to formalize this task force and clarify its authority to evaluate whether current reimbursement rates adequately compensate providers for delivering healthcare services.

Why is this important

Healthcare provider reimbursement rates directly affect the sustainability of clinics, hospitals, and specialty services, particularly in rural or underserved areas. If rates are inadequate, providers may reduce services, relocate, or exit the market entirely, limiting patient access to care. This task force creates a systematic mechanism for reviewing and recommending rate adjustments rather than relying on ad-hoc legislative action.

Potential points of contention

  • Funding implications: Recommendations to increase reimbursement rates will increase state healthcare spending unless offset by other budget cuts or revenue measures
  • Task force composition and independence: The bill's effectiveness depends on whether the task force includes diverse stakeholder voices (providers, patients, payers, state budget officials) and whether recommendations are binding or merely advisory
  • Rate-setting methodology: Disagreement may arise over which metrics determine "adequacy"—inflation alone, provider costs, market comparisons, or other factors—and whether recommendations apply uniformly across all provider types and regions

Compiled from official sources — confirm details with the bill’s official record.

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