AN ACT to amend Tennessee Code Annotated, Title 71, relative to TennCare.
Summary
SB0748 amends Tennessee’s TennCare statute to set minimum reimbursement rates for ground-based ambulance services that transport TennCare recipients. For covered emergency ambulance transports, TennCare would be required to pay at least 67.5% of the federal Medicare allowable charge for participating providers. For covered nonemergency ambulance transports, TennCare would be required to pay at least 100% of the Medicare allowable charge.
The bill applies to both public and private ground ambulance services that bill for transports and have a base of operations in Tennessee. By establishing these floor rates in statute, the measure would limit TennCare’s discretion to reimburse ambulance providers below the specified percentages and would directly affect how the program pays for emergency and nonemergency transportation services for Medicaid enrollees.
Impact
The bill would amend Tennessee Code Annotated, Title 71, Section 71-5-165, by replacing the existing reimbursement language with mandatory minimum payment standards for ambulance transports under TennCare. This would affect the state Medicaid program’s payment methodology for eligible ground ambulance providers and could increase reimbursement levels for emergency and especially nonemergency transports compared with current practice, depending on existing rates. The practical impact would fall on TennCare, ambulance providers operating in Tennessee, and recipients who rely on ambulance transport services.
Sentiment
The available voting history suggests the bill was received favorably in committee: the Senate Health and Welfare Committee recommended it for passage by a 9-0 vote and referred it onward to the Senate Finance, Ways, and Means Committee. No committee transcript was provided, so there is no recorded debate to indicate opposition or detailed support arguments. Overall, the bill appears to have had a positive reception at the committee stage.
Contention
The main policy issue is reimbursement level. Supporters likely view the bill as a way to ensure ambulance providers are paid at rates closer to Medicare and to help maintain access to emergency and nonemergency transport services for TennCare patients. Potential concerns would center on the fiscal impact to TennCare and the state budget, since setting statutory minimums could increase program spending and reduce flexibility in negotiating or adjusting payment rates. No specific objections are recorded in the provided materials, but the reimbursement mandate itself is the likely point of contention.