Tennessee legislation · 114th General Assembly
Tennessee SB1939: AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 5, relative to the annual coverage assessment.
Status: Chaptered, May 26, 2026
Fiscal Summary NOT SIGNIFICANT Bill Summary ON APRIL 6, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1867, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, enact the "Annual Coverage Assessment Act of 2026." The Act imposes an annual coverage assessment on covered hospitals for fiscal year 2026-2027. The total assessment on all covered hospitals in the aggregate must be equal to 6% of the federally recognized annual coverage assessment base. As used in this amendment, a "covered hospital" means a hospital licensed under Tennessee law as of July 1, 2026. However, all of the following hospitals are excluded: A hospital that has been designated by CMS as a critical access hospital as of July 1, 2026. A mental health hospital owned by this state. A hospital that is not licensed as a mental health hospital and does not operate an emergency department covered by the federal Emergency Medical Treatment and Active Labor Act (EMTALA). A hospital that is determined by the division as eligible to certify public expenditures for the purpose of securing federal medical assistance percentage payments. A hospital that has been designated by CMS as a rural emergency hospital as of July 1, 2026. As used in this amendment, an "annual coverage assessment base" means the total net patient revenue minus the medicare net revenue, for all hospitals as shown in the hospital's medicare cost report for the fiscal year that ended during calendar year 2021, subject to all of the following qualifications: If a hospital does not have a full twelve-month medicare cost report for 2021 on file with CMS but has a full twelve-month cost report for a subsequent year, then the first full twelve-month medicare cost report for a year following 2021 on file with CMS is the hospital's portion of the annual cov
What the bill says
From the amended text:
House Insurance 1 Amendment No. 1 to HB1867 Kumar Signature of Sponsor AMEND S e n ate Bill No. 1939* House Bill No. 1867 by deleting all language after the enacting clause and substituting: SECTION 1. Tennessee Code Annotated, Title 71, Chapter 5, Part 20, is amended by deleting the part and substituting: 71-5-2001. Short title. This part is known and may be cited as the "Annual Coverage Assessment Act of 2026." 71-5-2002. Part definitions. As used in this part: (1) "Annual coverage assessment" means the annual assessment imposed on covered hospitals as set forth in this part; (2) "Annual coverage assessment base" means the total net patient revenue minus the medicare net revenue, for all hospitals as shown in the hospital's medicare cost report for the fiscal year that ended during calendar year 2021, on file with CMS as of September 30, 2023, subject to the following qualifications: (A) If a hospital does not have a full twelve-month medicare cost report for 2021 on file with CMS but has a full twelve-month cost report for a subsequent year, then the first full twelve-month medicare cost report for a year following 2021 on file with CMS is the hospital's portion of the annual coverage assessment base; HA0698 (B) If a hospital does not have a full twelve-month medicare cost report …