Senate Bill 2036, known as the "Stabilizing Healthcare Access with Reimbursement Protections (SHARP) Act," aims to amend Tennessee health insurance regulations by introducing new requirements for health insurance entities. Starting January 1, 2027, these entities will be mandated to adjust in-network reimbursement rates and annual benefit maximums annually, based on the inflation index, with a cap of four percent on increases unless otherwise approved by the commissioner of commerce and insurance. The bill outlines specific definitions, including "annual benefit maximum," "health insurance entity," and "reimbursement rate," and establishes compliance measures, including annual reporting and documentation requirements for health insurance entities.

Additionally, the bill allows for voluntary catch-up adjustments for reimbursement rates or benefit maximums that have not changed for five consecutive years, with a cap of twenty percent on such adjustments. It also provides a waiver process for entities facing financial hardship and emphasizes equitable treatment for small and rural providers. The commissioner is tasked with monitoring compliance, ensuring network adequacy, and may prioritize enforcement in areas with provider shortages. The act will take effect upon becoming law, with provisions for the department of commerce and insurance to allocate resources for implementation.