Bill > HB1867

This bill, titled the "Annual Coverage Assessment Act of 2026," establishes a new assessment on "covered hospitals" (hospitals licensed under specific state titles, with certain exclusions like critical access hospitals) to fund healthcare services. The assessment is calculated based on each hospital's "annual coverage assessment base," which is generally defined as net patient revenue minus Medicare net revenue from a specific fiscal year, with detailed provisions for how this base is determined for various hospital situations. The total assessment across all covered hospitals is intended to be six percent of the federally recognized base. The bill outlines conditions for the assessment to become effective, including federal approval from the Centers for Medicare & Medicaid Services (CMS) that the assessment is permissible and does not negatively impact federal funding. It also specifies how the collected funds will be deposited into a "maintenance of coverage trust fund" and used for various healthcare programs and services, aiming to avoid reductions in state funding and maintain or expand coverage for beneficiaries. Importantly, the bill allows the division (likely referring to the state's Medicaid agency, such as TennCare) to submit its annual report on this assessment to legislative committees more frequently than quarterly, providing more timely updates on the program's status.