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HB 2046

TennCare - As introduced, directs the first $150 million of tax revenue generated by the health maintenance organization tax on or after July 1, 2026, to be utilized to draw down federal funds to reimburse a physician, advanced practice registered nurse, or physician assistant who is entitled to receive TennCare reimbursement for a CPT code for evaluation and management, obstetrics and gynecology, or anesthesia. - Amends TCA Title 56; Title 63; Title 68 and Title 71.

114th Regular Session (2025-2026) Introduced by Ryan Williams

Tennessee dedicates $150M annually from HMO taxes to boost TennCare reimbursements for physicians and nurses in specific specialties starting 2026.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
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Bill Summary · HB 2046

Legislative bill overview

HB 2046 directs the first $150 million in annual revenue from Tennessee's health maintenance organization (HMO) tax—starting July 1, 2026—to be allocated toward increasing reimbursement rates for physicians, advanced practice registered nurses, and physician assistants for specific medical services covered by TennCare (Tennessee's Medicaid program). The bill focuses on evaluation and management, obstetrics and gynecology, and anesthesia services.

Why is this important

Healthcare provider reimbursement rates directly affect healthcare access and quality, particularly in Medicaid programs serving low-income populations. By dedicating HMO tax revenue to boost provider payments, the bill aims to incentivize healthcare professionals to participate in TennCare, potentially improving access to care in underserved areas and reducing provider shortages in critical specialties like obstetrics and anesthesia.

Potential points of contention

  • HMO cost pass-through: HMOs may pass increased tax costs to consumers through higher premiums, potentially affecting private insurance affordability for middle-income Tennesseans
  • Targeted approach: The bill benefits only specific medical codes and provider types, potentially widening reimbursement disparities for other healthcare professionals and services not included
  • Federal matching uncertainty: While the bill mentions drawing down federal funds, the mechanics and reliability of federal matching for this funding mechanism may be unclear, creating budget predictability risks

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

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