NASHVILLE – Senators voted 25-5 today in favor of a 3.52 percent fee, or “assessment,” on hospitals that is aimed at helping state government stave off an estimated $1 billion in TennCare cuts.
During debate, no one voiced opposition to the measure, which was brought by the Tennessee Hospital Association to help block cuts that otherwise would go into effect July 1. The House version is nearing a floor vote.
Sen. Ken Yager, R-Harriman, a cosponsor, urged colleagues to vote yes on the bill, saying that in rural areas, “it’s no overstatement to say the proposed TennCare reductions would threaten these hospitals’ very existence.”
He said the hospital industry “voted to impose an assessment on their own patient revenues to trigger federal funds already set aside for this purpose. This assessment will not be passed along to the patients. In order to make this happen, the General Assembly must pass this bill.”
Among the handful of lawmakers voting against the measure was Senate Speaker Ron Ramsey, R-Blountville, who is running for governor.