Tennessee Hospitals Ask Governor to Extend, Raise Assessment Fee to Avoid TennCare Cuts

The Tennessee Hospital Association has asked Gov. Bill Haslam to extend the hospital assessment fee for an additional 12 months in an effort to help TennCare, the state's Medicaid program, avoid massive cuts, according to a Chattanooga Times Free Press report.

Along with the 12-month extension, hospitals have the group has asked to raise the fee from 3.52 percent of net patient revenues to 4 percent or slightly more, according to the report.

Last spring, hospitals urged lawmakers to pass the fee to avoid cutting provider reimbursements. The fee is set to expire July 1 unless lawmakers renew it.

The assessment fee currently raises about $290 million annually, and these increases may push that number to $400 - $430 million.  The money would be used by the state to draw federal matching funds, which would provide a total of nearly $1.2 billion for the estimated $8 billion TennCare program.

Read the Chattanooga Times Free Press report on TennCare and hospital assessment fees.

Read more about TennCare:

- With $8M Budget, TennCare May Eliminate Certain Coverage, Limit Physician Visits for Patients

- Tennessee Hospital Association May Ask for Assessment Fee Renewal, Increase

- TennCare to Face Significant Challenges Post-Reform Despite Overhaul


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