The Tennessee Hospital Association may ask incoming Gov. Bill Haslam and state lawmakers to extend, and possibly increase, the hospital assessment fee that helped the state avoid making more than $700 million in TennCare cuts this year, according to a Chattanooga Times Free Press report.
This spring, hospitals urged lawmakers to pass the fee to avoid cutting provider reimbursements. The 3.25 percent fee is set to expire July 1 unless lawmakers renew it. Another pressing issue is whether the fee will be increased to cover the loss of $121.5 million in one-time federal stimulus-related funds.
The fee now raises some $290 million, with approximately $80 million funding a pool payment back to hospitals. The other $210 million goes to TennCare, the state health insurance program. The state uses those funds to draw an additional $506.5 million in federal matching funds. The total $717 million is being used to fund or buy back previously planned TennCare cuts.
Read the Chattanooga Times Free Press report on the Tennessee Hospital Association and the renewal of the hospital assessment fee.
Read more about hospitals in Tennessee:
- Eligible Providers and Hospitals Can Start Signing Up for Medicare EHR Incentive Program on Jan. 3
- CEO of Tennessee's LifePoint Hospitals Will Also Serve As Chairman
- University of Tennessee Medical Center Warns 8K Patients About Possible Data Breach
This spring, hospitals urged lawmakers to pass the fee to avoid cutting provider reimbursements. The 3.25 percent fee is set to expire July 1 unless lawmakers renew it. Another pressing issue is whether the fee will be increased to cover the loss of $121.5 million in one-time federal stimulus-related funds.
The fee now raises some $290 million, with approximately $80 million funding a pool payment back to hospitals. The other $210 million goes to TennCare, the state health insurance program. The state uses those funds to draw an additional $506.5 million in federal matching funds. The total $717 million is being used to fund or buy back previously planned TennCare cuts.
Read the Chattanooga Times Free Press report on the Tennessee Hospital Association and the renewal of the hospital assessment fee.
Read more about hospitals in Tennessee:
- Eligible Providers and Hospitals Can Start Signing Up for Medicare EHR Incentive Program on Jan. 3
- CEO of Tennessee's LifePoint Hospitals Will Also Serve As Chairman
- University of Tennessee Medical Center Warns 8K Patients About Possible Data Breach