Tennessee House Bill HB1280

Tennessee 2025-2026 Regular Session

• Filed/Introduced: 8/16/26
• Introduced: 2/6/25
• Refer: 2/12/25
• Refer: 3/12/25
• Refer: 3/25/25
• Refer: 4/16/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3; Title 9 and Title 71, relative to medical expenses.

Summary

HB1280 creates a new “medical expense relief fund” within Tennessee’s general fund to help the next of kin or estate of a deceased TennCare enrollee pay outstanding medical debt and related expenses. The bill authorizes the Department of Human Services to administer the program, set application procedures, determine eligibility and award criteria, and decide whether grants are paid to family members, estate representatives, or directly to creditors. It also allows the department to accept gifts and grants for the fund, requires rulemaking, and directs annual reporting to legislative budget committees. The bill contemplates an initial appropriation of $250 million for the fund, but it expressly states that it is not itself an appropriation and that no money may be spent unless specifically appropriated in the general appropriations act. Grants may be used only for the decedent’s unpaid medical debt and expenses, including amounts owed under TennCare estate-recovery rules and federal law. Any unspent balance carries forward, and investment earnings remain in the fund.

Impact

If enacted and funded, HB1280 would add a new state-administered grant program in Title 71 focused on relieving medical debt tied to deceased TennCare recipients’ estates. It would affect the Department of Human Services, the state treasurer, and the budgeting process by creating a dedicated account, requiring administrative rules, and imposing annual legislative oversight. The bill would not automatically spend state money; instead, it would establish the legal framework for future appropriations and for distributing assistance to eligible estates, next of kin, or creditors.

Sentiment

The available vote history suggests generally favorable support in committee, with unanimous or near-unanimous approval in the House Health Subcommittee and House Government Operations Committee, and a stronger but not unanimous vote in the House Health Committee. No committee transcript is available, so the record does not show detailed debate, but the progression indicates the bill was viewed positively overall and advanced without major procedural resistance.

Contention

The main point of potential contention is fiscal: the bill proposes an initial $250 million fund, but it also makes clear that spending depends on a separate appropriation, which may raise questions about cost, budget priority, and whether the program should be funded at all. Another possible issue is program design, including who should receive grants—the estate, next of kin, or creditors—and how the department should weigh debt amount versus demonstrated need. Because the bill touches TennCare estate-recovery obligations, there may also be concern about how the relief fund interacts with existing state and federal medical debt collection rules.