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SB 557

TennCare - As enacted, extends the nursing home annual assessment fee to June 30, 2026. - Amends TCA Title 71, Chapter 5.

114th Regular Session (2025-2026)

SB 557 extends Tennessee's annual nursing home assessment fee through June 30, 2026, to continue funding TennCare's Medicaid program operations.

Comp. became Pub. Ch. 345
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Bill Summary · SB 557

Legislative bill overview

SB 557 extends Tennessee's nursing home annual assessment fee program through June 30, 2026. The fee, which nursing facilities must pay annually, funds TennCare (Tennessee's Medicaid program). This represents a continuation of existing revenue mechanism rather than a new tax or fee.

Why is this important

Nursing home assessment fees directly impact the funding available for TennCare services, which covers healthcare for low-income Tennesseans, seniors, and disabled individuals. The extension ensures stable Medicaid financing but may affect nursing home operational costs, potentially influencing staffing levels, facility maintenance, and service quality.

Potential points of contention

  • Industry burden: Nursing homes argue assessment fees increase their operational costs during a period of staffing shortages and financial pressure
  • Cost pass-through concerns: Facilities may increase resident costs or reduce services, potentially affecting quality of care or resident access
  • Program dependency: Reliance on nursing home fees as a revenue stream creates pressure to maintain the fee indefinitely rather than finding alternative Medicaid funding sources

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

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