Tennessee House Bill HB1864

Tennessee 2025-2026 Regular Session

• Introduced: 1/21/26
• Refer: 2/2/26
• Refer: 3/3/26
• Refer: 3/17/26
• Refer: 3/23/26
• Refer: 4/1/26
• Refer: 4/7/26
• Engrossed: 4/13/26
• Enrolled: 4/23/26
• Passed: 5/19/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, Part 10, relative to medicaid reimbursement for medicaid nursing facilities.

Impact

The proposed changes in HB 1864 could significantly impact how nursing facilities are funded by Medicaid in Tennessee. By implementing a systematic approach to periodically update reimbursement rates, the bill seeks to ensure that nursing homes receive adequate financial support that aligns with current operational costs. This may help in stabilizing funding for nursing homes and maintaining their ability to provide quality care to residents, particularly as costs for medical supplies and staff have been on the rise.

Summary

House Bill 1864 aims to amend the Tennessee Code Annotated related to Medicaid reimbursement for nursing facilities. The bill specifically addresses the rebasing of Medicaid resident day-weighted median costs and prices, ensuring that these rates are updated at intervals not exceeding three years. This rebasing process is designed to reflect more accurately the costs associated with providing care in nursing homes, utilizing the most recent audited financial reports and other critical data in calculating reimbursement rates.

Sentiment

The sentiment around HB 1864 appears to be generally supportive among healthcare providers, particularly those managing nursing facilities. Supporters argue that the bill will provide a much-needed update to Medicaid reimbursement rates, ensuring fairness and sustainability in funding. However, there may be concerns regarding the implications of these adjustments on the overall Medicaid budget, including potential impacts on other services or funding allocations within the state.

Contention

While there is support for HB 1864, notable points of contention may revolve around how the updates to reimbursement rates will be funded and whether there will be any adverse effects on the overall Medicaid budget. Stakeholders may raise concerns about the adequacy of funding to implement these provisions without leading to cuts in other essential health services. Additionally, the complexity of calculating the budget adjustment factor and how it impacts various providers could be contentious during discussions in legislative committees.