Tennessee Senate Bill SB2142

Tennessee 2023-2024 Regular Session

• Introduced: 1/29/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 27 and Title 56, Chapter 7, Part 6, relative to covered persons insured under state healthcare plans.

Impact

The bill proposes that individuals obtaining major medical treatments at lower costs than average allowed amounts will receive rebates. These rebates would be split between the individual and the state, aiming to promote cost-effective choices in healthcare. This could significantly affect state budgeting, as the reductions in healthcare costs for the state plan could lead to reductions in insurance premiums and overall state expenditures for health coverage.

Summary

Senate Bill 2142 aims to amend the Tennessee Code Annotated by establishing an incentive program for covered persons insured under state healthcare plans. This program is designed to encourage the selection of lower-cost options for major medical treatments. The bill defines 'covered persons' as individuals insured under state healthcare plans and outlines the criteria for what constitutes a major medical treatment, notably those with costs exceeding $500. The bill's implementation is targeted for January 1, 2025.

Contention

While SB2142 has the potential to streamline healthcare costs and offer financial incentives to both the state and individuals, there may be concerns regarding the quality and accessibility of healthcare services. Critics might argue that pushing for lower costs could lead to reduced service quality or access issues for covered individuals, particularly if out-of-network providers are penalized through higher co-pays or deductibles. The future reports mandated by the bill will likely scrutinize the efficiency and effectiveness of the implemented incentive program.