TN SB2023

Delays implementation of nursing facility Medicaid reimbursement provisions by one year, changing dates from FY 2025-2026 to FY 2026-2027 and extending the sunset date from June 30, 2026 to June 30, 2027

Requires rebasing of Medicaid nursing facility costs and prices at intervals no longer than three years, using the most recently audited cost reports to establish new median costs reflecting current purchases of goods and services

Creates a Budget Adjustment Factor (BAF) that TennCare must calculate annually during non-rebase years to adjust provider reimbursement rates to meet the nursing facility program budget target

Prohibits TennCare from applying any BAF or computation that alters median cost calculations when establishing a new base year period

Requires TennCare to notify legislative health committee chairs by March 1 before making any pro rata payment reductions, with rules to be developed in consultation with the comptroller and Tennessee Health Care Association and finalized by December 31, 2026