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HB 2097

TennCare - As introduced, extends the ground ambulance service annual assessment to June 30, 2027; changes the penalty imposed by the bureau on an ambulance provider for each day an assessment remains unpaid from $50 per calendar day to 5 percent of the principal amount owed per month for each month. - Amends TCA Title 71, Chapter 5, Part 15.

114th Regular Session (2025-2026) Introduced by Jay Reedy

Tennessee extends ambulance service assessment fees through 2027 and replaces flat daily penalties with 5% monthly penalties on unpaid amounts, potentially increasing financial pressure on providers.

Rec. for pass; ref to Calendar & Rules Committee
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Bill Summary · HB 2097

Legislative bill overview

HB 2097 extends Tennessee's ground ambulance service annual assessment fee collection through June 30, 2027, and modifies the penalty structure for unpaid assessments. Instead of a flat $50-per-day penalty, providers would face a 5 percent monthly penalty on the outstanding principal amount owed.

Why is this important

Ground ambulance services are critical rural and urban healthcare infrastructure. How these services are assessed and penalized affects their financial viability and, consequently, emergency response capacity. The penalty restructuring could significantly impact provider cash flow and compliance incentives depending on how quickly assessments are typically paid.

Potential points of contention

  • Penalty structure comparison: The new 5 percent monthly penalty (60 percent annually) is substantially higher than the previous $50-daily penalty for most providers; this could disproportionately burden smaller ambulance services with limited cash reserves
  • Assessment duration extension: Extending the authority through 2027 commits future funding without clarity on whether this is permanent or temporary, and whether revenue targets justify continued collection
  • Rural provider impact: Rural ambulance services operating with thin margins may face greater financial strain under the steeper penalty structure, potentially affecting service availability in underserved areas

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

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