TN HB0385

TennCare would certify healthcare providers' unreimbursed costs as federal tax-deductible charitable contributions under 26 U.S.C. § 170, with statements issued by January 31 each year

"Unreimbursed costs" defined as the difference between 125% of the average federal Medicaid reimbursement rate and the actual TennCare reimbursement rate paid to providers

Eligible providers include individual healthcare providers and group practices participating in TennCare, but excludes hospitals, nursing homes, ambulatory surgical centers, and other healthcare facilities

Providers must pay a $25 annual fee by January 15 to receive certification; group practices pay $25 per provider in the practice

Effective July 1, 2025 for charitable contributions made on or after that date; rulemaking authority takes effect immediately upon becoming law