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HB 1864

TennCare - As introduced, extends the nursing home annual assessment fee to June 30, 2027; makes other related revisions. - Amends TCA Title 71, Chapter 5, Part 10.

114th Regular Session (2025-2026) Introduced by Gary Hicks

HB 1864 extends Tennessee nursing home assessment fees through 2027 to maintain TennCare Medicaid funding, affecting both facility operations and healthcare access for low-income residents.

Enrolled; ready for sig. of H. Speaker.
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Bill Summary · HB 1864

Legislative bill overview

HB 1864 extends Tennessee's nursing home annual assessment fee program through June 30, 2027, with related amendments to TennCare regulations. The bill maintains an existing funding mechanism that nursing homes pay into to support the state's Medicaid program (TennCare). This is a reauthorization of an expiring fee rather than new legislation.

Why is this important

Nursing home assessment fees are a significant revenue source for TennCare, which provides healthcare coverage to low-income Tennesseans. Allowing the fee to expire could reduce funding for Medicaid services or shift costs elsewhere. The extension affects both nursing home operations (which pay the fee) and vulnerable populations (who depend on TennCare coverage).

Potential points of contention

  • Cost to nursing homes: Extending the fee maintains ongoing financial obligations for long-term care facilities, which operate on tight margins and may pass costs to residents or reduce services
  • Medicaid funding dependency: Reliance on assessment fees as a revenue mechanism raises questions about sustainable healthcare financing versus program funding from general appropriations
  • Expiration timing: The 2027 sunset date means this issue will require legislative attention again soon, potentially creating recurring uncertainty for the industry

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

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