House Bill 1864, also known as Senate Bill 2023, amends various sections of the Tennessee Code Annotated related to Medicaid reimbursement for nursing facilities. The bill introduces new definitions, including "Budget adjustment factor," "New base year period," "Nursing facility," and "Rebase," which clarify the processes and terms used in calculating Medicaid reimbursements. It also modifies existing provisions by changing the fiscal year references from "FY 2025-2026" to "FY 2026-2027" in multiple sections, ensuring that the adjustments align with the new timeline for reimbursement calculations.

Additionally, the bill establishes a new section that outlines the rebasing and annual reimbursement process, mandating that the base-year annualized Medicaid resident day-weighted median costs and prices be rebased at least every three years. It specifies the criteria for including cost reports in the calculations and details the methodology for determining the budget adjustment factor (BAF), which adjusts expected Medicaid expenditures to meet budget targets. The bill also requires the bureau of TennCare to notify legislative committees of any payment reductions and authorizes the bureau to promulgate necessary rules in consultation with relevant stakeholders, with a deadline for implementation by December 31, 2026.

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