House Bill 1864 amends Tennessee Code Annotated, Title 71, Chapter 5, Part 10, to update the Medicaid reimbursement process for nursing facilities. The bill introduces new definitions, including "Budget adjustment factor," "New base year period," "Nursing facility," and "Rebase," which clarify the terms used in the reimbursement process. It also establishes a new section outlining the rebasing and annual reimbursement procedures, mandating that the base-year costs and prices be rebased at least every three years and detailing the exclusion of certain cost reports from calculations.

Additionally, the bill modifies several deadlines related to the fiscal years for Medicaid reimbursements, changing references from "FY 2025-2026" to "FY 2026-2027" in multiple sections. It deletes certain language regarding the timing of payments and establishes a requirement for the bureau of TennCare to notify legislative committees about any reductions in payments due to budget shortfalls. The act will take effect upon becoming law for rule promulgation purposes, while the other provisions will be effective starting July 1, 2026.

Statutes affected:
Introduced: 71-5-1001, 71-5-1002, 71-5-1003, 71-5-1004, 71-5-1010