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SB 1805

TennCare - As introduced, increases from 67.5 percent to 110 percent the rate of reimbursement of the federal medicare program's allowable charges for participating providers the bureau shall reimburse an ambulance service provider; deletes the Ground Ambulance Service Provider Assessment Act. - Amends TCA Title 68 and Title 71.

114th Regular Session (2025-2026) Introduced by Paul Bailey

The bill raises the minimum reimbursement for ground ambulance services to 110% of Medicare and terminates the related assessment act on July 1, 2026.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
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Bill Summary · SB 1805

Summary of SB 1805 / HB 1836 (Tennessee 114th General Assembly)

Purpose and Intent

  • Replaces the current minimum reimbursement rate for ambulance services under TennCare with a higher floor.
  • Specifically requires reimbursement to ambulance service providers for covered TennCare transports to be no less than 110% of the federal Medicare program’s allowable charge for participating providers.
  • Terminates the Ground Ambulance Service Provider Assessment Act on July 1, 2026.
  • Preserves any remaining funds in the Ambulance Service Assessment Revenue Fund (ASARF) after June 30, 2026, for use under the Act’s existing provisions until exhausted.

Key Provisions and Changes

  • Section 1: In Tenn. Code Ann. § 71-5-165(a), increases the minimum reimbursement rate for ground-based ambulance services from 67.5% to 110% of the Medicare allowable charge.
  • Section 2: Repeals Tenn. Code Ann. § 71-5-165(b).
  • Section 3: Deletes Part 15 of Chapter 5, Title 71.
  • Section 4: Any funds remaining in the ASARF after June 30, 2026, must remain in the fund and be expended or disbursed according to the current provisions that existed on June 30, 2026 (as applicable under § 71-5-1508).
  • Section 5: Effective date is July 1, 2026.

What Is Affected

  • Ambulance service providers that bill for transports under TennCare
  • The Ground Ambulance Service Provider Assessment Act and its associated revenue fund (ASARF)
  • TennCare’s reimbursement framework for ground-based ambulances

Financial and Fiscal Impact

  • State Government Expenditures (General Fund):
    • FY 2026-27 and subsequent years: approximately $14,045,300
  • Federal Government Expenditures (matching funds via Medicaid):
    • FY 2026-27 and subsequent years: approximately $24,482,500
  • Total estimated annual impact starting in FY 2026-27 tied to increased minimum reimbursement:
    • Recurring increase in expenditures: about $38,527,800
    • Of this amount, roughly 36.455% ($14,045,309) is state funds; 63.545% ($24,482,491) is federal funds (due to Medicaid matching).
  • Revenue/Expenditure impact related to terminating the ASARF:
    • The fiscal note indicates that any additional change in revenue or expenditures resulting from terminating the Act is estimated to be not significant, provided remaining ASARF funds are used under current law.

Economic and Market Impacts

  • Beneficiaries: TennCare enrollees receiving ambulance services would experience a higher reimbursement rate floor for ground-based ambulance providers.
  • Ambulance providers: Expected increase in revenue due to the higher reimbursement floor (approximately $38.5 million annually starting in FY 2026-27).
  • Employment: The bill notes that it is unlikely to increase the number of ambulance providers in the state; thus, job impact is considered not significant.

Timeline and Procedural Notes

  • Termination of the Ground Ambulance Service Provider Assessment Act: July 1, 2026.
  • Any remaining ASARF funds post-June 30, 2026 remain available for expenditure/disbursement under the Act’s prior provisions.
  • Effective date of the act: July 1, 2026.
  • Legislative history shows progression through committees in 2026, with final action pending or completed in the Senate Finance, Ways, and Means Committee as of April 2026.

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

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