Bill > SB1797

This bill, aimed at amending Tennessee law concerning managed care organizations (MCOs), which are entities like health maintenance organizations that contract with the state's TennCare program to provide services, establishes new rules for how these MCOs can terminate contracts with qualified nursing facilities, defined as licensed nursing homes certified by TennCare to provide Medicaid services. Specifically, the bill prohibits MCOs from ending their contracts with these nursing facilities without a valid reason, for mere convenience, or without clearly stating the grounds for termination. Furthermore, the bill clarifies that the Bureau of TennCare, the state agency overseeing the TennCare program, holds the sole authority to decide if a nursing facility can be removed from participating in TennCare, and that MCOs must have their standard contract templates reviewed and approved by both the Bureau and the Department of Commerce and Insurance to ensure they comply with these new termination restrictions.