Tennessee House to Consider 3.5% "Coverage Fee" for Hospitals

Two Tennessee state representatives have introduced legislation that would assess a 3.5 percent coverage fee on hospitals in the state in order to offset proposed cuts in the TennCare program, according to a report by the Nashville Post.

The measure is supported by the Tennessee Hospital Association because the fee would generate nearly $230 million in federal matching funds for the state's Medicaid program, according to the report.

The state budget includes cuts to the TennCare program that, with lost federal matching funds, would cut funding for the program by $1.2 billion over the next two years. Hospital leaders have said this could "cripple" hospital finances, according to the report.

The coverage fee would be implemented for only one year, effective July 1, as a temporary fix, according to the report.

Read the Nashville Post's report on the Tennessee hospital fee.



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